Inflationary pressures for U.S. farmers will continue into next year. In 2022, it cost corn farmers an average of 19% more to raise a crop than in 2021. Higher prices for fertilizer, chemicals and fuel are largely to blame. According to the USDA, it cost an average of $882 per acre to raise corn this year and $598 for soybeans.
Chemical expenses climbed another 24% and fuel increased a whopping 44%. Thankfully, high commodity prices helped offset the increase in input costs. But will the same profit potential follow into 2023? Higher incomes are possible, even if prices drop. DTN says farmers should be in excellent financial positions due to bolstered working capital and higher asset valuations during the past several years.
Read more on 2023 income and rising crop production costs here.
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