Ag Economist: expect higher seed corn costs this fall
The cost of everything is going up right now. An ag economist says to expect to pay higher seed corn prices this fall.
Gary Schnitkey says that most farmers understand the price tends to go up during good economic times on the farm. He studies farm business management records and expects costs to go up as much as $10 dollars an acre with prices rising into 2022.
He also found seed costs as a percentage of expected revenue per acres have been increasing for more than 45 years.
According to Schnitkey, “It started at roughly 4 percent in 1975. So in 1975, seed costs as a percent of expected revenue was 4 percent and now we’re over 10 percent. So, the share of gross revenue going to seed costs have increased over time.”
He notes that even without increasing revenue, the per-acre costs of seed corn has trended higher over the years. The increases are simply larger in better times.