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Inflated input prices will tighten margins for 2023 planting season

An ag economist says the full effects of inflated input prices will be felt by producers in 2023.

“The outlook isn’t dire by any stretch; it’s just not going to be as good as it has been the last couple of years.”

Rob Fox, Director of CoBank Knowledge Exchange, tells Brownfield commodity prices are strong with fall corn around $6, soybeans around $14 and wheat close to $8, but most input costs are also up between 15-30%.

“It is a little bit different paradigm with anhydrous still up near $1,000 per ton, labor costs, borrowing costs and so forth. I penciled it out to be a 27% higher cost for corn and wheat production. Maybe slightly less for soybeans, but still a major cost increase.”

He says trade headwinds, including uncertain demand from China as the country continues to battle COVID-19, will also put pressure on margins.   

CoBank’s 2023 Year Ahead Report outlines other forces expected to shape the US rural economy next year.

  • I’m not sure about how his calculator works, my spread sheet shows significant profit for 180 bu corn and 60 bu beans for 2023. I’m getting a little tired of hearing all of the negative articles on input costs, my glyphosate is down, dry fert is trending down, nitrogen is down from spring highs

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