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Ag economist suggests selling grain while prices are still profitable

An ag economist recommends farmers sell some of their grain now, while a profitable price is guaranteed.

Gary Schnitkey with the University of Illinois tells Brownfield, “When we budget for 2023, we see all costs going up.”

But he says while input prices are high, corn and soybean prices are currently at profitable levels.

“In this high-cost environment, I calculate the break evens to be $5.00 for corn and $13.20 for soybeans. We have bids above that right now.”

He says if the US and Brazil have average yields or above in 2023, farmers will see lower commodity prices by this time next year, so pricing corn and soybeans both now, and several times throughout the year will give farmers the best opportunity to make a profit.  

Brownfield interviewed Schnitkey at the 2022 Farm Assets Conference in Champaign, Illinois.