A lot of early outlooks for 2012 crop input costs are higher, with some as much as 16% higher than this year’s crop.
So, how do these kinds of increases stack up for each specific input? Ohio State University Extension ag economist Barry Ward says current budget projections for his state show a likely 10% rise in variable costs for next year’s crop. But, the figures that make up that estimate are all across the board.
“Higher commodity prices and higher costs lead us to a riskier production year as the cash investment in an acre of corn will top $400 (excluding land, machinery and labor costs) and in some production scenarios be closer to $450 per acre,” Ward says. “The cash investment in an acre of soybeans or wheat will be in the $200-$250 range.”
There’s a ton of variability behind that 10% increase in variable costs. The good news is fuel costs will likely be about 5% lower than this year. But, big jumps in fertilizer prices, especially for nitrogen and potassium, will offset the cheaper fuel. Here’s a specific rundown of Ward’s input cost expectations: