2011 US crop margins & costs

It's going to cost you more to grow your corn and soybean crops this year, but with the general trend in the grain markets lately, that added expense should be worth it, according to new crop margin data from Purdue University.

Two Purdue economists find rising input costs -- namely fertilizer and fuel -- have the average per-bushel production cost for corn around US$4.19 per bushel. That's up 30 cents from a year ago. The jump in soybean production costs is around 33 cents per bushel at US$9.73. The numbers, say Purdue ag economists Craig Dobbins and Bruce Erickson are based on "average-quality land" that's capable of raising 161-bushel corn and 49-bushel soybeans.

Last October, Purdue specialists estimated corn fertilizer costs to be around US$134 per acre. That's up to US$151 per acre in the most recent figures. Soybean fertiliser costs are seen up US$7 to US$69 per acre in that same time-frame. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.