FARGO, N.D. -- Jim Kurtz, regional farm extension educator in ag business management, working out of Worthington, Minn., offers this context for the impact of land values in the six southwest Minnesota counties where he has student enrollees.
- Land rent: For many farmers, land is the largest input cost. In southwest Minnesota, it went from $106.42 in 2005 to $109.93 in 2006, to $120.26 in 2007.
-Seed costs: Seed costs went from $50.95 per acre in 2005 to $54.94 in 2006 to $62.42 in 2007. One producer told a farm management specialist that seed for 2008 might be in the $75-per-acre range, which includes technology that could increase or decrease need for herbicides and insecticides.
n Fuel costs: In 2005, fuel costs were $17.73 an acre for putting in and caring for the crop. That climbed to $19.51 in 2006 and $21.51 in 2007.
- Drying costs: In 2005, the cost of drying corn was $8.48 per acre; and in 2006, it was $9.35, and plummted to $3.36 in 2007. Costs will go significantly higher in 2008 because of the wet corn.
ADVERTISEMENT
- Fertilizer: Fertilizer cost was $63.52 per acre in 2005, and $54.94 in 2006. "My hunch -- it'll be $75 in 2007," Kurtz says. Many farmers have significant amounts of livestock, which can replace synthetic fertilizers. in 2009, the figure may be coming down, along with petroleum products.
n Interest: Interest costs vary quite a bit, but were at $8.31 per acre in 2005; $10.29 per acre in 2006; and $12.44 per acre in 2007.
-Chemical: Cost was $24.78 per acre in 2005, $21.42 in 2006, $18.85 in 2007. "I think it's probably safe to say that the chemicals didn't drop in cost, but some of the cost of the cost was shifted to seed traits," Kurtz says.
- Machinery cost: Per acre (fuel, repairs, depreciation, interest on equipment loans, machinery leases and custom hire) has been reported as a category since 2005. In 2005, it was $49.40 and increased to $54.18 in 2006, then $63.50 in 2007. Those are the averages for corn enterprises, but a report called "Rank-em" farm management enrollees showed a range from $50 an acre to about $110. People with debt under control, good line of equipment, a lot of acres will have lower costs. Higher-debt farmers and fewer acres drive costs up.
