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Higher corn seed costs expected in 2022

An analysis of past data is pointing towards higher corn seed prices in 2022.

Ag economist Gary Schnitkey with the University of Illinois tells Brownfield over time seed costs have risen with gross revenue for corn which is also expected to be higher in 2022.

“Right now, it is projected to be higher than it was from 2013-2019. If you are looking at bids for 2021 fall delivery, they point to $4.50 corn for 2022.”

He says with good commodity prices, the seed cost increase won’t hit balance sheets too hard until revenue for corn starts to decline.

“Over time corn prices are going to come down, they are likely to average below $4.00, more like $3.80 again and that’s when those seed costs and other cost increases like fertilizer and cash rents will have an impact on farm budgets.”

On average for the US, Schnitkey expects a $6 to $10 per acre increase in seed corn next year.

Interview with Gary Schnitkey

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