Ag economist says 2021 was a good year for a lot of producers
Lower production costs and high commodity prices set the stage for a strong ag economy in 2021.
“This is going to go down as one of those really good years for a lot of producers,” David Widmar cofounder of Agricultural Economic Insights says. “Years like this are few and far between.”
“High commodity prices, which kicked off towards the end of 2020, and a fairly low-cost structure for our inputs going into the 2020 crop year, set us up for some really big profitability,” he says. “Again, we didn’t have record-high commodity prices, but we had some pretty strong and arguably record-high profitability.”
He tells Brownfield corn and soybean returns, for the most part, exceeded the highs between 2011 and 2013. But, he says, that also sets the stage for prices for everything related to farming to rise as well.