Minnesota’s crop farmers had a profitable year in 2021. According to Minnesota Farm Business Management data, this is due to a combination of factors including higher commodity prices and crop insurance indemnities. “Even in some of the drought restricted areas, it was amazing to see the ability that the farms had to generate a profit,” said Ron Dvergsten, farm business management instructor, Northland Community and Technical College. Yet there is concern about what this year will bring. Farm expenses, including rent and fertilizer, are getting attention. “The crop produced in 2022 will be the most expensive, as far as dollars spent producing it, in the history of farmers. Across the board, we’ll be looking at more dollars spent on a per-acre base for each farm than farmers have spent in prior years.” With higher commodity prices and a normal production year, Dvergsten says this year should pencil out.
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