Many farmers are looking for cost-reduction strategies to overcome low-return prospects in the year ahead. One area that could help in this process is machinery management.
Dr. Gary Schnitkey from the University of Illinois spoke with RFD-TV’s Tammi Arender about current ag equipment trends, the main factors in depreciation costs, and what producers need to keep in mind.
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Adequate transportation capacity exists, but fuel costs and soft river demand could widen basis risk.
Lower oil prices may trim input costs but pressure biofuel demand.
Tight storage could widen basis and limit marketing flexibility.
Cold-driven spikes in gas prices can quickly raise fertilizer and energy costs.
Rising Chinese feed output — especially for swine — signals sustained demand for protein meals and feed inputs, even when meat production growth appears modest.
