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Production costs are outweighing higher commodity prices

Western Indiana farmer Kevin Cox says production costs are eating into higher commodity prices as the season begins.

“We’re experiencing great prices, but input costs are so high,” he says. “Last year anhydrous was $575 a ton, for example. That’s an important input product we use to raise our corn crop and now we’re seeing levels at $1500, $1600, and $1800 a ton– more than triple what it was last year.”

He tells Brownfield all input prices are up.  

“Everything from seed cost and chemical costs to fertilizer and equipment,” he says. “We were wanting to add another semi and trailer to the mix for our operation. The truck that I bought a year ago I can’t replace it for twice that price today. It’s just the supply and it’s everything.”

Fuel prices are also impacting farmers.  

“The other day one of the guys came in and said we were burning over a $1,000 a day in diesel fuel hauling off our crop,” he says. “We don’t travel very far– just to the local elevator– and we’re burning $1,000 worth of fuel a day. If you were traveling any kind of distance at all it would be exponential. That’s a huge input and it’s a challenge.”

Cox grows corn and soybeans in Brazil, Indiana.