Keep an eye on new government regulations, such as air pollution fees, additional irrigation discharge rules, and new restrictions on crop health chemicals that can make it difficult to remain profitable. Rising prices can take a toll on profitability as the costs of some essential inputs increase. Since farmers do not have much influence over crop prices, the only option is to improve efficiency and get more value out of every dollar of input.

Good business practices suggest that we continually reexamine the value of every input and then eliminate whatever is not essential. Some growers look at fertilizer as one of the inputs that might be reduced when financial conditions are tight. However, crop nutrients must be in adequate supply in order to achieve healthy plant growth and top yields. Nutrient-deficient crops cannot make good use of soil water and they are more susceptible to pest damage. A loss of yield and quality is a very real possibility when nutrients are in short supply. Any changes in a fertilizer program should be thoughtfully made on a field-by-field basis, using results from soil testing as a guide.

The outlook looks bright for a successful 2010. Take time to examine what can be done to make this year even better than last year.