News

Crop protection expenses trending lower

Crop protection expenses for farmers have been trending lower for more than 40 years according to new insights.

David Widmar with Ag Economic Insights tells Brownfield for corn, crop protection costs in the 1970s and ‘80s averaged between $40 and $50 per acre and today it’s dipped to $35 per acre.  “As a percent of total expenses, this has also dropped over time, between seven and eight percent back in the ‘80s and ‘90s and today about four to five percent.”

Over the same period, Widmar says soybean crop protection costs have shifted from $40 per acre to $30, and today make up about six percent of total expenses.  “It’s really important to say, ‘How have my expenses changed overtime and what are some key drivers to that?’”

Widmar says 2018 crop budgets from Purdue University show an uptick crop protection expenses when compared to national numbers which is most likely tied to more herbicide resistance issues.

He says benchmarking costs overtime with USDA and regional data can help find where adjustments need be made.

AUDIO: Interview with David Widmar