By Ryan Hanrahan
Farm News Media reported that “USDA’s new 2027 cost of production forecast reveals farmers may not see meaningful relief from elevated production costs anytime soon. The projections show total production costs continuing to rise for most major crops, pushing all commodities to record highs — including corn at $952 per acre, soybeans at $701, sorghum at $477 and wheat at $428.”
“Compared to USDA’s earlier 2026 projections, total production costs were revised higher for every major crop included in the report,” Farm News Media reported. “In a new Market Intel report, American Farm Bureau Federation Economist Faith Parum said 2027 projected production costs are not being driven by fuel and fertilizer, but rather by higher prices for seed, chemicals, repairs, labor, machinery and cash rent expenses.”
“For many crops, projected 2027 costs exceed not only USDA’s previous forecasts but also the highs experienced during the supply chain disruptions and inflationary pressures of the early 2020s,” Farm News Media reported. “Since 2005, total production costs have more than doubled for several major row crops, including soybeans (+165%), corn (+146%), and wheat (+106%).”
Source : illinois.edu