Strategically Planning Around High Input Costs
Just like that, the final two months of the year are upon us. And if you’re someone who does income tax planning the time is right now. It’s a volatile time. If you’re going to be pre-purchasing inputs for 2023, I wanted to know, is there one area where you’ll get the most bang for your buck? What is most likely to jump up in value next year? Is that what we should be buying right now?
To answer that question, I spoke with Katelyn McCullock, Director and Senior Agricultural Economist at the Livestock Marketing Information Center.
“Unfortunately, you’re probably looking at higher prices either way and, locking in, you might just reduce that stress of not buying at the absolute high point. But this market, I think, no matter what you’re talking about it’s going to be very difficult to time. I gather a lot of the folks that you’re talking to are probably looking at it for tax planning purposes. You know, any of those key inputs that you can reduce your tax burden with will probably be a good idea to purchase ahead of time. I’m not sure there’s necessarily one that I would recommend more than another other because I think they’re all going to be relatively high and dealing with some of the same issues that we’ve seen this year.”
So, there you have it. I thought maybe there would be one thing I could give you the scoop on, but it sounds like continued high prices to be the norm.