News

Break-even price for corn needs to decline more

An ag economist says the break-even price for corn has come down significantly in the past few years but it still has a ways to go.

Purdue agricultural economist Michael Langemeier says corn producers have seen a drop in the price of several inputs.  One of those areas is cash rents.  “In many states – including the I-states, Iowa, Illinois, and Indiana cash rents came down 10 to 15 percent for average productivity land,” he says.  “That’s certainly helped.”

Langemeier says fertilizer inputs have dropped, too.  “Nitrogen, phosphorus, and potash early this September compared to last September were down 20 to 35 percent,” he says.  “Depending on which item you were looking at.”

But, he tells Brownfield – while it’s helped reduce cost of production – it still isn’t enough.  “We reduced corn costs $50 to $75 – if not a little bit more per acre,” he says.  “But we still have another $50 to $75 to go before we get to break even. But there is a little good news there.”

Langemeier says with another big corn crop on the way – producers will likely see continued pressure on corn prices.