Farm Industry News

VARIABLE CROP COSTS JUMP

Higher energy prices hit growers in the variable cost line on their financial statements. Variable costs are expected to be 33% higher in 2006 than 2002, according to a study by Gary Schnitkey and Dale Lattz, University of Illinois economists. The variable costs of corn production are projected to be $55/acre higher next year than in 2002. About half of the increase is due to fertilizer costs, projected to be $28 higher next year than in 2002. Pesticides and seeds are $17 higher and machinery-related items like fuel are $7/acre higher. Variable costs for soybean production are projected to be up $20/acre in 2006 compared to 2002.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish