Home > News > Increased Grain Production Likely to Cause Consistently Higher Input Prices

Global grain and oilseed production is on the rise. As a result, Farm Futures says the current crop priorities can be cited as a main factor in persistently high fuel and fertilizer prices for the foreseeable future. According to USDA-Foreign Agriculture Service data, the worldwide acreage percentages have risen 3.2% for the crop mix since 2019-2020, thus increasing demand for inputs like fertilizers and fuel. Though these predictions are just assumptions for now, the USDA will provide its Economic Research update this summer giving more extensive 2021 production forecasts to confirm and bring insights to nationwide cost trends. According to Farm Futures, with continuous inflation, global acreage expansions and soaring commodity prices, it is not likely that operating costs will decrease at all in 2021. View a more in-depth look at fertilizer, fuel, and input pricing dynamics.

Subscribe

Be among the first to learn about the ever-changing crop insurance industry by subscribing to the ProAgMessaging system.