Barry Ward, Leader, Production Business Management
Lower crop prices and a mix of higher and lower input costs have been the theme for the last several months. High production costs in 2022 gave way to a mix of higher and lower input costs for the 2023 production year. Factors affecting both supply and demand have continued to drive commodity crop prices lower. The result of these changes is an outlook for limited positive margins for the 2023 corn, soybean and wheat crops.
Production costs for Ohio field crops are forecast to be slightly lower than last year with lower fertilizer and fuel prices leading the way. Higher rents, seed costs, machinery/equipment costs and interest rates mostly offset any benefit related to lower cost areas.
Variable costs for corn in Ohio for 2023 are projected to range from $514 to $628 per acre depending on land productivity. The trend line corn yield (181.8 bpa) scenario included in the corn enterprise budget shows a decrease in variable costs of 10% but a decrease in total costs of only 5% due to higher rents and machinery/equipment costs.
Continue reading Ohio Crop Returns Outlook for 2023 – Final Crop Enterprise Budgets for 2023 →