If you work in crop production, you know that last year wasn’t easy. Tighter margins impacted growers across the nation, and the downturn has farmers looking for ways to cut back in the new year.
Soundbite: “Growers realize the margins are very tight on corn and soybeans and also wheat. They are looking for places to intelligently cut.” — Steve Hoffman, InDepth Agronomy crop consultant in Wisconsin
The million-dollar question: Where will farmers make these cuts? AgWeb recently surveyed more than 1,300 farmers, and overwhelmingly, nearly 80%said the first place they’ll look is machinery.
Rewind: In 2024, the Association of Equipment Manufacturers (AEM) reported total farm tractor sales were down 13%, while combine sales dropped 24%.
“Retrofit” is becoming the name of the game when it comes to making upgrades. Instead of buying new, Casey Seymour of Machinery Pete said we will see an increasing number of farmers turning to upgrade kits.
While agriculture loves technology, saving money will likely trump some of those upgrades this year. A whopping 60% of farmers said they won’t upgrade as often. A slim 9% said going without upgrades is unlikely.
Farmers are also looking to skip the name brands in the new year, with 61%saying they’re more likely to use generics. While glyphosate prices tumbled last year due to excess supply, it’s uncertain where herbicide prices will be this year.
Skipping/lowering the amount of fertilizer: 40% of farmers said they plan to decrease their fertilizer rates. While potash prices edged up due to tight global supplies, ammonia pricing could go down with an increase in supplies.
The bottom line: In 2025, farmers need to make a crop budget and evaluate what’s really needed.