Farmers are always operating on thin margins, looking for the best and most effective way to cut costs. According to a study from Michigan State University Extension, one of the best ways to do this is through foraging.

Foraging is a good way to increase a farms profitability, whether it’s through higher production of beef and dairy or through cash sales and make the most of your farm credit for the year. The gap between a high producing and low producing forage feed can range as much as 50% in alfalfa and as much as 26% in corn.

Foraging can also help with the cow’s health. High quality feed, knowing exactly what your cows are eating and where it comes from helps you have a more hands on approach to your cow’s nutrition. This can aid in a decrease of disease and any vet bills you may incur as a result. Some farmers have also reported a rise in their milk prices due to an increase in butterfat and protein.

These margins can drastically affect profits. Taking proper advantages of foraging can become more and more self-sufficient and rely less on purchasing feed from outside sources. According to the MSU study, farmers have purchased 10% less feed in 2016 and 17% in 2015. But the higher production all comes down to harvest time. Getting steered in the right direction with relation to what and when to plant is how you make the most of every acre.

Talk to an Ag mortgage specialist for more information and assistance with making foraging a new staple of your farming production.

Soybeans are on the brink of becoming the number one cash crop for the first time in 35 years! King corn sowings are forecasted to drop 90.12 million acres according a Bloomberg survey and, in its place, soy plantings are set to increase by 90.69 million.

If you’re thinking you’ve heard this tale before, this same result was expected during the last planting season as well, however the temperature in North America favoured grain and the plantings of soybeans came up shy to that of corn.

The difference this year? Drought.

Dry weather is expected during this year’s growing season and soybeans are much more resistant to drought conditions than corn, making this the safest bet for growth in 2018.

The growth of soybeans isn’t just reflected in the fields. Prices are also favouring soybeans over corn with the futures trading at approximately 2.5 times higher than corn contracts, the fifth straight year that they are offering better returns.

Keep these factors in mind when considering what to purchase with your farm loans, especially if you’re a first-time farmer looking for a safe return on a low risk crop.

Being well informed on these types of important decisions is the key to success, talk to an Ag mortgage specialist today for an expert opinion.