2022 Spring Farm Outlook

Page 8 Spring 2022 Logan County Farm Outlook LINCOLN DAILY NEWS March / April 2022 Spring 2022 Logan County Farm Outlook LINCOLN DAILY NEWS March / April 2022 Page 9 Continue 8 Some dealers have been able to get what they need, still have parts, and can continue to provide service to their customers. Adjusting inventory management is another way of dealing with the issue. A recent article on 2022 shortages said, “companies are getting better at forecasting and responding to potential disruptions.” As a result, the impact of these disruptions could be “less pronounced.” At Sun Ag, Coop said they are currently in good shape as far as overall inventory of some products. They used to get the products as needed, but now, Coop said they are trying to get products before they are needed. Sun Ag is trying to plan ahead based on what farmers have needed in the past. The Coop does not want to make people wait for weeks on products due to supply chain delays. Most equipment at Sun Ag goes out from April to June, so Coop said they are stocking up now. Once April hits, the equipment will go out quickly. Before the busy planting season begins, Ag- Land FS is also stocking up on products. Heller said, “we typically have a spring and fall season in agriculture, so we do have time to ‘reset’ and procure products in between seasons.” Because they are securing products now, Heller said, “It appears we will be adequately supplied with most of our products for this upcoming spring season.” Heller said, “Unfortunately, like everything else, we have seen inflated prices from a year ago.” In addition, “There have been some chemicals in short supply which may force some product switching.” On the plus side, Heller said, “Other than some shipping delays and a few cancellations of chemical orders, I would have to say that we are satisfied with our inventory supply for this spring.” Though things are looking good for this spring, Heller feels next fall could be a different story as the Ukraine-Russia war has the strong potential to cause dry fertilizer and nitrogen shortages. Heller said, “A lot of fertilizer and nitrogen products are exported from that part of the world. Prices have already started to spike because of the conflict, and many vessel suppliers are refusing to enter Russian ports. We definitely need a resolution to the conflict that doesn’t impede supply for next fall.” Coop has worked in the agricultural business for 25 years and said right now, planning ahead is more important than ever. There is some hope on the horizon that the tide may start to turn soon. The article “2022 Supply chain outlook features shortages, high delivery costs” says, “While supply Continue 8 USDA’s Agricultural Marketing Service (AMS). Due to both short supply and major cost increases, some suppliers are rationing input products like chemicals and fertilizers. Local effects of supply chain issues At Ag-Land FS it is mainly product shortages and transportation issues [that] are having the biggest impact on business. Heller says, “many products we use are produced overseas and covid shutdowns have delayed production and manufacturing of these products. Also, higher energy costs have affected freight rates and fewer truck drivers has affected delivery dates and times.” Jim Coop, Sales Agronomist at Sun Ag Inc. in Emden, says there are many unknowns. They are sometimes told they are going to get certain products, but there is a question of whether they will get them. If they do get the products, they wonder if it will get there in time. Price increases are connected to supply that cannot keep up with the demand. Coop said they have seen prices increasing daily for some suppliers or products. With each shipment they receive, prices are higher. Product and equipment suppliers have found some ways to manage these challenges. Even with supply chain issues, some dealers have quite a bit of high-quality used equipment on hand due to trade-ins.