USDA Cost of Production Estimates Show Little Change from 2016

by Brent Gloy

According to the latest USDA cost of production estimates, U.S. farmers will find the 2017 cost of producing corn, soybeans, and wheat basically unchanged from 2016.  Combined with the outlook for flat to slightly better commodity prices, the cost of production estimates portray yet another year of challenging economic conditions throughout corn, soybean, and wheat country. Continue reading

Are Lower Fertilizer Prices in the Cards for 2016?

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by David A. Widmar

A few weeks ago we looked at price expectations for corn and soybean in 2016. Based on the Purdue Crop Budgets, even lower corn and soybean prices are forecasted for 2016; this is especially true for soybeans. With little chance of commodity prices improving in the foreseeable future, production cost reductions will be critical in 2016. Fertilizer is the largest corn input expense (excluding land). This week we take a look to see if lower fertilizer prices can be expected in 2016. Continue reading

Farmland Values and Cash Rents: Declining Profits Point to Further Reductions

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by Brent Gloy

As we discussed in these May posts (1, 2) most indications are that prices for U.S. row crop farmland are now softening, bringing an end to a tremendous run of increases for farmland values. We thought it would be useful to take a look at how far farmland values have come and some different measures of farmland valuation in order to gain  insights into where prices might be headed. Continue reading