Strategies for Purchasing Farm Inputs Bulletin is now available
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Are farm input prices better now or should you wait to make a purchase?
Answering that question presents quite a challenge. Historically, farms that prioritize purchasing inputs early will lower total input costs. However, the long-term outlook for many markets can remain unclear if domestic and global uncertainty impact supply chains and product availability. In order to decide whether buying now is right for your farm, you need to think a bit more strategically about your buying options.
Each year you develop a crop plan that identifies what you will grow. Crop plans look at acres, yield goals, nutrient needs and pest concerns. While crop plans are not a new concept for most farms, they are an important part of being strategic and maximizing your use of available cash. Cash is often limited to working capital or loan funds. Since they are used for numerous purchases throughout the year, efficient use of these dollars is important.
Bulletin E-3508: Strategies for Purchasing Farm Inputs offers insight into strategic approaches to buying farm inputs. Insights include understanding market conditions, identifying farm needs, maximizing available cash and prioritizing what products to buy and when. The bulletin also explores how to secure products at reasonable prices by creating an input purchasing plan. An input purchasing plan takes your crop plan and adapts it into an efficient buying strategy to obtain products at affordable costs. Borrowing from grain marketing concepts, input purchasing plans focus on being intentional and proactive about buying decisions.
Visit the DEMaND Series website to download this new resource today. Check out additional articles, bulletins, webinar recordings and more!
The DEMaND Series (Developing and Educating Managers and New Decision-makers) helps the next generation of farm operators learn about financial and business management strategies. These strategies help individuals grow in their capacity to meet the complex needs and challenges of managing a successful farm business. Whether individuals represent a succession of generations, transition from employee to owner, or are new to farming, the DEMaND series offers a fresh look at farm management.
