ABERDEEN - Agriculture officials say budgeting and wise use of capital will be important this year as farmers face higher production costs to plant and harvest a crop.
Fuel and fertilizer are big expenses - and they're costing more.
"The key is just to be realistic about it all," said David Vander Vliet, an Extension agent from Campbell County. "Everybody wants to be that top-yield producer, but a lot of producers are really going to have to start thinking about it. Those big yields shouldn't be their top priority."
Spink County Extension Agent Mark Rosenberg doesn't expect much relief from higher fuel prices.
"Where the price is going to end up, I don't know if I even want to guess at that. It could end up getting more and more expensive," he said.
That's why it's so important producers budget and be smart with what they're spending money on, said Burton Pflueger, an economist for the South Dakota State University Extension Service.
"The expectations are that farmers should net more in crop production this year than in 2007," Pflueger said. "Budgeting is critical, and efficient use of crop is critical."
Rosenberg agreed.
"The costs of fertilizer and fuel put the pressure on to be that much more smart about how things are planted," he said.
Still, Pflueger fears record wheat and corn prices might sway decisions a little too much.
"My concern is that people will rely on the high price as a substitute for their deficiencies," he said. "...A high price doesn't do you any good if you don't have any grain to sell."
Pflueger said he expects other production costs to rise - marketing, crop insurance premiums, seed, custom-rate charges, drying charges and rent.
"Anything involved with getting the crop in and out of the field will probably go up," he said.Rapid City Journal
