Grains Oilseeds

[Tackler]

Cost of planting will rise because of supply prices
Article published Jan 6, 2008

Columbus, Ohio - Grain prices may be on the way up this winter, but so is the cost of planting the 2008 crop.

Corn production costs are predicted to be 24 to 35 percent higher in 2008 than in 2007, said Ohio State University extension economist Barry Ward.

Soybean costs are projected to be 23 percent higher.

Dramatically higher fertilizer costs, especially potassium and phosphorus, and higher fuel prices are the primary reasons input costs will be higher for this year's crop.

"The average price of phosphorous fertilizers is expected to increase approximately 65 percent from 2007 to 2008. Potassium prices are expected to increase 40 percent from 2007 to 2008," Ward said.

Seed prices are also increasing, fueled by the increasing number of seed packages that contain only transgenic trait hybrids, he said.

"Farmers' choices when it comes to seed selection are becoming more limited, as non-transgenic hybrids are being replaced by seed with single and stacked traits," Ward said. "Seed company data indicates prices for 2008 to be 5 to 10 percent higher."

To save money, farmers should:

Use non-transgenic hybrids if they have performed well in tests.

Consider crop protection chemicals as an alternative to the transgenic hybrids. Chemical prices have remained flat or lower over the last two years.

Make fertilizer evaluation a year-round activity. Spread out purchases over the year to reap a better average price.

Consider manure as an alternative to high-priced fertilizer.

Use cover crops as an alternative nitrogen source.