Crop production for 2011 likely to cost farmers more

As grain prices have increased this year, the cost of growing them in 2011 is likely to cost more according to Purdue University estimates. The 2011 Crop Cost & Return Guide, projects that the farmer could see increases into double-digits in variable costs. This includes fertiliser, seed, pesticides, fuel, machinery and other expenses not related to labour or land rental.

They estimate the variable costs in 2011 will be up about 13 percent compared to 2010, also soybean will increase by six percent and winter wheat will also be up by 13 percent. Most of the projected cost increases are tied to a recent surge in fertiliser prices. Read more...