While commodity prices increased substantially in the past few months, AgCountry Farm Credit Services Market Education Specialist Jeff Beaudry said input costs are higher. “Many aren’t aware of how much the input costs have gone up. Anhydrous went from $440 per ton in July to $620 per ton now, a 30 percent increase. Urea, very central to growing corn, went from $320 per ton last July to $490 per ton now, up 35 percent.” Input costs have risen as much if not more than commodity prices. “Fuel is up 25 percent, chemical is up 10 to 15 percent and we know what it will do to cash rents. Rent will go up as commodity prices rise,” said Beaudry. “I try to tell farmers if you forward contract your crop, you’d better be booking expenses as well. This includes fertilizer, fuel, oil and chemical.”
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