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Senior Contributor

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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7 Replies
Senior Advisor

Re: Not a shock: Input costs up for '11 crop -- Anybody buying already?

Yes everything bought and paid for. Prices mostly higher but not too bad. But then they may be higher now.

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Senior Contributor

Central Illinois land costs @$230/acre for prime ground?

that seems a little light...I wonder how they come up with that number? Did they look at market based rents, or sweetheart rents?

 

I have heard of rents over $300 in southern MN...up to $160 for just pure crap ground, and a few rumours of the $400 mark being hit.

 

And we would not be on a par with prime Illinois growing conditions.

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Veteran Advisor

Re: Not a shock: Input costs up for '11 crop -- Anybody buying already?

I locked in fertilizer prices a couple months ago. Im sure fertilizer prices have gone up some since the even higher spike in corn price.

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Veteran Advisor

Re: Not a shock: Input costs up for '11 crop -- Anybody buying already?

Fertilizer and virtually all seed bought already.

Sprays I will have to wait until the season and decide just which ones I might need to use.

Have about 20% of soybeans priced for 2011 but I grow IP beans and they require me to sell by November 30 to get my premium.

Also priced about 15 % of winter wheat.

So still have all my 2011 corn and most of the rest to price at the top of the marketSmiley Wink

Well it's either the top or I will wait for the bottom.

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Contributor

Re: Not a shock: Input costs up for '11 crop -- Anybody buying already?

Everything of mine is bought and paid for for 2011.  I sure can't imagine anyone not atleast having their fertilizer booked by now. 

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Senior Contributor

Re: Not a shock: Input costs up for '11 crop -- Anybody buying already?

I aint' bought nothin' yet, except some fuel.  I'm a bottom picker who likes to put it off until I'm sure of what I want to do and where the lowest prices are.  But, I'm old and small.  If I were a BTO, I'd be bought up early.

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Contributor

Re: Not a shock: Input costs up for '11 crop -- Anybody buying already?

I screwed myself pretty good in '09 buying early...but 90% of the time its better to buy early IMO.  My only remaining crop expenses for this growing season are application fees, sidedress applicator rent, and fungicide if I use any.  I never have any luck getting the late deals from seed companies like alot of guys on here talk about.

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