Oct 2, 2014
Home| Tools| Blogs| Discussions| Sign UpLogin

Tighter Ag Margins Expected for 2012

January 12, 2012
By: Jeanne Bernick, Top Producer Editor

This past year was the best year ever for Iowa ag despite floods, droughts and freezes. In December, futures prices projected 2011/12 season-average prices of $5.81 per bushel for corn and $11.20 for soybeans, making the Iowa corn crop the most valuable ever produced and the soybean crop the second most valuable, according to the December Iowa Farm Outlook & News from Iowa State University. The record or near-record values aren’t just occurring in Iowa.

Production costs are on the rise, however, after record levels in 2011. "Feed costs increased 23%, livestock purchases cost 18% more, fertilizer and lime went up 28% and fuel costs increased 27%. Thus, agricultural margins look to be tighter as we enter 2012," the report says.

One major issue is the general reduction in demand for U.S. corn and soybeans. USDA projections for demand show lower feed, ethanol, export and crush demand, the report states.

tighter margins

See Comments

FEATURED IN: Top Producer - January 2012
RELATED TOPICS: Marketing, Top Producer

Log In or Sign Up to comment


No comments have been posted



Receive the latest news, information and commentary customized for you. Sign up to receive Top Producer's eNewsletter today!

The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions