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Jeff_a_Caldwell
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Registered: ‎04-29-2010
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Not a shock: Input costs up for '11 crop -- Anybody buying already?

Just saw a report from Gary Schnitkey over in Illinois that shouldn't be a huge surprise -- input costs (non-land) are up for the 2011 crop, but not quite to 2009 levels.

 

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"Given current corn prices, corn production looks to be profitable in 2011 even with higher production costs. While profitable, rising production costs have increased the break-even price necessary to cover costs," Schnitkey says. "Continued cost increases will raise break-even levels in 2012. These high break-even prices suggest the need for continued prices above $4.00 per bushel in order for profitability to continue."

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So, are you getting your inputs locked in (or have you already) for this year's crop? Or, with the way the markets are acting now, are you not too worried about it? Sounds like we're still well above break-even levels. Think we'll stay there?
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Jeff Caldwell
Agriculture.com Multimedia Editor
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