Skilled combine operators can capture additional profits of more than $150 per hour of harvest but field losses are commonly about 10 percent of yield, sometimes as high as 20 percent, due to careless harvest operation. With only 10 percent of combine operators checking their adjustments regularly to match field conditions, those losses could easily be reduced to 3 or 4 percent.Researchers and extension officers are urging farmers to pay close attention to reducing soybean harvest losses this fall. Typically more than 75 percent of soybean machine harvesting losses are gathering losses, so greatest attention should be given to proper header adjustment and operation. This includes maintaining ground speeds of 3 mph maximum, running the reel about 25 percent faster than ground speeds (increasing to 50 percent when beans have lodged), and positioning the reel axle 6 to 12 inches ahead of the cutter bar.

There’s a lot in the news to suggest the breakup of a Russian potash cartel last July may result in significant crop input savings for farmers. Thomson Reuters suggests potash prices are poised to drop 20% and that Malaysian and Indonesian buyers, heavily dependent on potash for palm oil production, continue to wait for cues from China or India. Further hints point to Chinese prices, which usually set the market low, as potentially $320 a tonne. A Globe and Mail article quotes other dire predictions from Robert Winslow, a National Bank Financial analyst, that bumper corn and soybean crops will force potash prices to fall regardless of the activities of any oligopoly. But the same article also presents the position of Agrium chief executive Michael Wilson, who feels the market is overreacting to the news and isn’t assuming any specific price drop values.

Calculating cost of production (COP) is an important part of marketing but not every farmer keeps a close eye on their COP.

OMAF offers some tips on developing a COP budget, which is impossible without good farm records. While the format can vary, typically a COP budget includes gross revenue, direct variable costs, indirect variable costs, fixed costs and net profit or loss. Several other resources are available to help farmers ensure their COP calculations will have maximum impact on a business. Farms.com Market School’s 10th Episode is an 8 minute in-depth analysis of COP calculations, particularly on a per bushel basis, and their benefit to any marketing plan. In addition to enhancing marketing plans, COP calculations can be useful benchmarking tools.

Refer to the TIP report (derived from the entire AgriStability database) for industry benchmarks based on similar farm types and income ranges.