Get that checkbook ready: It's going to cost you more to raise the 2011 corn and soybean crops than it did this year, according to a recent report.
The 2011 Purdue Crop Cost & Return Guide, released Tuesday by Purdue University crop specialists and ag economists, indicates variable costs -- including fertilizer, seed, pesticides, fuel and machinery -- could see "double-digit increases" next year, reflecting higher grain market prices in recent months.
"For rotational corn, which is most of the corn in Indiana, our estimates show variable costs in 2011 up around 13% compared with 2010," says Bruce Erickson, Purdue director of cropping systems management. "Soybean production costs will be up around 6%, and for winter wheat we're estimating that costs will be 13% higher. If you grow continuous corn, you can expect to spend about 14% more next year."
For corn in a typical corn-soybean rotation, the Purdue study shows variable costs will range from $348 to $403 per acre, while the same costs for soybeans in the same rotation will range from $182 to $205 per acre. Continuous corn variable costs will range from $366 to $422 per acre.
