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Expenses: What to Plan and Be Aware of

Jim Rogers Agri-business, Georgia

By Clint Thompson

The spring season is just around the corner for Georgia’s specialty crop producers. High fertilizer expenses, increased gas and diesel prices and unpredictable weather conditions are just a few of the challenges farmers face over the next several months.

Chris Butts, executive vice president of the Georgia Fruit and Vegetable Growers Association (GFVGA), discussed the mindset of farmers ahead of planting this year’s crop.

Chris Butts

“Everybody’s still watching the weather. We’ve had some scares, but luckily, we’ve dodged a couple of bullets. The big thing we keep hearing is input costs and how much it’s costing them to bring a crop to market,” Butts said. “The supply chain issues are still in effect. How can we be profitable when the costs of growing our crop have gone up exponentially across the board, from everything to fertilizer to gas and diesel?”

Fertilizer costs rose before the war in the Ukraine and have remained high amid the conflict between Ukraine and Russia.

“To me, it all comes back to uncertainty. It’s just one more point of uncertainty that a grower has got to face. What’s going to happen in Europe? What’s happening with supply chain issues?” Butts said.

expenses
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 “There’s no way around it, if you’re buying fertilizer and other supplies right now, you’re going to pay more for them. They’ve just got to be more careful than ever to watch that bottom line and know where they stand financially, not just at the end of the year but as they’re going.

Butts implores producers to practice proper planning and budget for the increased expenses.

“I think they need to be planning and pay careful attention to watching their numbers and watching their bottom line and being aware of those costs,” Butts said.

Costs