How producers can navigate through high input costs
Increasing crop prices are bearing some of the brunt of soaring input costs, but not all, and many want to know how long it will last. One expert says negotiations may be the key to success.
“Contracts are pretty common within the potato industry, especially for processing, but those are usually focused on output prices or the price that the farmer receives for the potatoes. But, not less so on the input costs, and so in this new environment in which input costs, there’s a lot of volatility, the contract that only preserves your price that you’re getting from the processor doesn’t really protect you in terms of the margin from volatility in the inputs.”
The University of Idaho Extension specialist recommends establishing a relationship with your dealer. In some cases, dealers are working with farmers to keep them as customers for the long run by finding prices that work for growers.
What to keep in mind next year as input costs continue to rise