My minimum price objective is much higher than in 2012. If we make the assumption of no direct payments in 2013, that change alone adds 40 cents/bu to production costs. Rising land rent also raises the cost of production.
My pricing steps are separated by 70 cents/bu – much greater than the 40 cent intervals used last year. I’m trying to wrap my mind around a new era in prices and the need to adapt every aspect of my plans to a new normal.
I will not take action until I choose to take the “draft” designation off and call it final.