Corn and soybean farmers have been enjoying record high prices and sizable profits for their past two crops. But higher input prices will eat into those margins in 2009. Many producers have already been confronted with soaring prices for fertilizer, with anhydrous ammonia selling for up to $1,000 per ton, payable in advance. Potash and phosphate fertilizers have shown similar increases. There are various reasons behind the sharply higher prices, but most of them are related to higher energy prices and their impacts on transportation and manufacturing costs. Seed, pesticide and fuel prices have also been affected, though to lesser degrees.
Iowa State University
Edwards, William M., "Credit Needs and Cash Rents Impacted by Higher Input Costs" (2008). Integrated Crop Management News. 781.
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