After rice was planted this year, I wrote about capital management strategies rice growers can use to ensure they’re starting the season off right. Now that we’re finished with harvest, I thought it would be a good time to share a few thoughts about what producers can do right now to help their bottom line and prepare for next season.

Run your numbers

Crop markets are always shifting, so you need to be sure you understand your numbers to make the most of your crop season. Determining your breakeven point will help you protect your profits and minimize losses.

Think through the variables that impact your operation. Did you have big equipment expenses this year? Did your crop yield more or less than you expected? What about your input purchases - did those fit your budget? How have commodity prices affected your projected revenue.

We understand that this year's outlook has been more challenging than many growers anticipated, but once you have a clear idea of the numbers for your operation, it’s time to apply it to next year's crop plan to position yourself for the best possible outcome.

Plan for next year

Looking at your numbers for this year, you can account for any additional expenses that you incurred to adjust next year’s outlook. To create some financial flexibility, you might want to consider financing all or some of your purchases to preserve your operating line and keep cash on hand.

Nutrien Financial provides custom and flexible financing for input purchases, and the February/March due dates align nicely with rice crop cycles. That way you actually have income from your crop before you have to make payments.

Keeping your operating line free by financing some expenses is another good way to counteract weather and other seasonal fluctuations that can impact your bottom line.

Look for efficiencies

Rice growers know we need to be as efficient as possible to positively impact our business. With costs increasing for labor, water, land and more, we need to look to areas that can improve our efficiency.

To improve the efficiency of the crop, Dyna-Gro is introducing a traited rice variety, DG563PVL. Using Provisia technology, DG563PVL offers better weed control and excellent yield potential.

Frank Groves, North American crop lead of cotton, rice, and specialty at Nutrien Ag Solutions, has been working on the new traited variety and is excited about the potential it brings to the market. “We’ve seen in testing that the yield is very comparable to Dyna-Gro 263L, so we expect 563PVL to be very competitive,” Frank says. “This variety can stand up to weed control, which was one thing a lot of our growers needed. We’re continuing to expand our footprint to support growers in ways the market demands.”

Use the pre-season to get ready for the next year

Smart pre-season planning can help put your mind at ease after a tough year. Use this time to shop early and get your inputs lined up so you don’t have to worry about them later. It’s a good time to take a step back and assess where you’d like to be at this time next year.

With Dyna-Gro rice varieties like DG263L and DG563PVL, growers can pair their crop planning with their financial planning. It's never too early to start thinking about your next crop season and how you can set yourself up for a successful year. Lean on your crop consultants and other trusted members of your team to make sure you’re optimizing your operation.