Analyst: Corn break even could be about $1 higher in 2022
A farm management analyst expects break-evens on corn to be much higher next year.
Kent Thiesse with MinnStar Bank in southern Minnesota tells Brownfield profit margins were around $3.80 to $4 per-bushel in 2021.
“They’re probably going to be looking at $4.50 to $4.75 per-bushel for 2022 just based on increased input costs and potentially increases in land rental rates.”
Some estimates show fertilizer costing 30 to 50 percent more in 2022 compared to this year.
“And seed costs have gone up, fuel costs (too). Obviously the cost of repairs and labor, so a lot of those costs went up considerably.”
Thiesse says knowing cost-of-production is especially important as farmers negotiate rental rates for next year.