URBANA, Ill. (RFD-TV) — Higher grain prices are offering some encouragement as harvest approaches, but elevated input costs remain a concern for producers.
University of Illinois agricultural economist Gary Schnitkey said several factors are shaping the market heading into harvest.
“A couple of the factors that appear to be driving that right now are the continuing or the heating up of the Ukraine-Russia conflict and that’s causing some ports to have some issues. As those ports have issues, we’re seeing commodity prices increase. Also, there’s some belief that yields are lower out there than USDA forecast. Much of that was based on some Pro Farmer tours as well as other indications that yields will be down this year. That yield decline takes off some corn and soybean supply.”
Schnitkey said producers are also looking ahead to what expenses could look like next year.
“Fertilizer costs are high. We are using ammonia prices in the high sevens in our budgets. Our DAP and potash remains high. Overall, for 2027, we are projecting the record-breaking high non-land costs for both corn and soybeans. We’re not thinking that cash rents come down.”
With grain prices moving higher, Schnitkey said producers may want to take another look at their marketing plans.
