The difference between success and failure in business is how well that business is able to manage risk. This special issue of The Progressive Farmer provides ideas for managing risk in one of the most volatile times ever in agriculture.

Reign In 2009 Costs
Fertilizer and fuel costs have dropped, but seed and herbicides will cost you more.
By Greg D. Horstmeier and Marcia Zarley Taylor

Herbicides Trend Higher
Crop chemical prices will climb 6 to 25% over 2008, according to company spokespersons. In many cases, that reflects higher transportation and raw materials costs, as well as the softening U.S. dollar.

"One of our big cost issues is the weak dollar, as a lot of our actives (ingredients) are produced in Europe," says Jeff Springsteen, head of corn herbicides for the Germany-based Bayer CropScience. He predicts a 6 to 7% increase in basic herbicide costs in 2009.

High world demand for glyphosate in the past year caused supply shortages and major price increases. Near term, supplies for the active ingredient in Roundup are expected to remain tight.

Monsanto announced earlier in the year it was expanding production of glyphosate at its Luling, La., manufacturing plant. The planned expansion will be completed in the first half of the company's 2010 fiscal year. Additional production capacity in the U.S. and China should eventually cause glyphosate prices to fall.

Tips to Tackle Costs • Take advantage of seed/chemical packages if they fit your farm. • Consider boom controls for the sprayer. Farmers using GPS-guided boom controls that close down nozzles to prevent overlap report 5% or more in chemical savings the first year. Photo: Gregg Hillyer