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Input costs continue to push crop farmers below breakeven

An ag economist says rising input costs are expected to pressure profitability for row crop producers.

Purdue University’s Michael Langemeier tells Brownfield farmers did see some relief when it comes to the cost of fuel and fertilizer in 2024.

But, “Even though prices have stopped increasing as much, they’re still high compared to what they were prior to COVID, it’s the same with input prices in agriculture,” he explains.

He says the breakeven price for corn is about $5 per bushel, which is 25 percent higher than it was four years ago.

“That makes it extra challenging when you’re looking at prices this fall that are closer to the mid $4.50s or below, in fact, if you adjust for basis, it’s under $4.50,” he says.

Langemeier says trade volatility, the war in Ukraine, and logistical challenges are impacting costs more than inflation.

“If things are getting all tied together now with trade woes, it’s hard to determine whether the price really is too high or if that’s just the price in today’s world,” he says.

Langemeier says the breakeven price for soybeans has increased 15 percent since 2021, at about $11.50.

USDA’s latest Farm Sector Income Forecast projected 2025 total production expenses to decline by about half a percent from 2024, with crop cash expenses remaining seven percent above average.