WATERLOO -- Northeast Iowa grain farmers better have a big piggy bank.

Agriculture experts and economists at the Ag Outlook and Management Seminar on Thursday said producers should save some of this year's profits for potential tough times ahead. Experts said making a profit on the 2009 crop may be difficult, if not impossible.

Iowa State University Extension hosted the seminar at Hawkeye Community College, one of several held throughout the state. The goal is to help agribusiness officials with future decision making.

Thursday's message was crystal clear: Corn and soybean farmers need to find ways save money next year and make shrewd marketing decisions or run the risk of a lot of red ink.

"It's going to be a very hard year (2009)," said Craig Chase, ISU Extension farm management field specialist. "The last couple of years were good. Hopefully (farmers saved) and they can take a down turn."

As local growers struggle to harvest this year's crop due to persistent wet weather recently, experts believe it will be worth the wait. For the most part, corn and soybeans will be profitable.

A year from now that may not be the case. Most crop inputs are way up and commodity prices tumbled since mid-summer highs, which is not a good combination for farmers. According to ISU estimates, grain farmers will struggle to break even on land that isn't debt free.

Chad Hart, ISU Extension's grain economist, estimates it could cost many producers $4.47 per bushel to raise corn and some break-even costs could soar past $5. For soybeans, cost of production is likely to break the $10 per bushel barrier.

The bad news: December 2009 corn futures were $4.41 per bushel on Monday and November 2009 beans were bringing $9.47. Earlier this summer, weather-related fears pushed corn near $8 per bushel and beans surpassed $16.

"Right now, we're in pretty good shape. It's '09 that we're looking for things to collapse, especially if farmers locked in (high inputs for next year)," Hart said.

Farmers often lock in or contract crop inputs for budgeting purposes and to save money. If Midwest growers did so in July, Hart said they will pay anywhere from 22 percent to 118 percent more in 2009 than 2008 for such things as fertilizer, seed, fuel, utilities and crop insurance.

Presenters weren't all gloom and doom. Some fertilizer, like urea, and fuel have retreated in price along with oil prices.

There's also a good chance commodity markets will rebound in the near future. Experts said tight grain supplies will force buyers to start bidding for 2009 acres, which could drive prices higher.

Several area bankers attended the seminar to get a handle on the agriculture economy. Bruce Clark, vice president of commercial and ag lending at Liberty Bank in Waterloo, said the less-than-rosy income potential for 2009 doesn't frighten him from making loans to area producers.

"Volatility makes marketing that much more important," Clark said. "Growers will have a good year (2008) and if the manage their proceeds properly, do some debt reduction when possible, life can be good."

Contact Matthew Wilde at (319) 291-1579 or matt.wilde@wcfcourier.com.