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Purdue economist says margins could squeeze for farmers

An ag economist says producers could face tighter margins if crop prices fall quicker than input prices.

Michael Langemeier is the Association Director of Purdue University’s Center for Commercial Agriculture.

“If input prices increase more in 2023, we’re not looking at the same crop price prospects in 2023 as we did in 2022,” he said. “If you look at the extended futures going into the end of 2023, corn and soybean prices are significantly lower.”

He tells Brownfield the break-even prices for corn and soybeans are expected to be higher this year.

“Fertilizer prices are not as high as they were last year at this time, but there’s other inputs that are still up compared to 2022,” Langemeier said. “When you combine all of that, you are looking at a smaller increase of break-evens.”

Langemeier says producers have also faced inflation rates three times the 10-year average.