2021 Fall Farm

Page 24 2021 Logan County Fall Farm Outlook Lincoln Daily News Oct. - Nov. 2021 to $63.1 B in 2021” in connection to higher prices for feed commodities. • Fuel and oil expenses may see a $3.3 billion, or 27.1 % increase. It would raise the amount to $15.2 B. The U.S. Energy Information Agency’s August forecast of higher diesel prices in 2021 factors in. • Labor expenses are forecast to increase to $39.0 billion. This increase is due to $2.1 B increase in hired labor expenses. • Net rent to landlords is forecast to increase by in 2021 to $19.2 billion. It is a $1.1 B, or 6.1 % increase. • Fertilizer-lime-soil conditioner expenses are expected to grow by 3.9 %. • Seed expenses are expected to and 1.4 %. With higher seed costs, some farmers are using lower acreage due to the costs of seed. This can affect their returns. Some say the chemical market has had some of the most significant impacts. Dow Jones writer Kirk Maltais reported in late September, “The cost for fertilizer is at its highest level since 2008 at nearly $900 per short ton.” With these increased costs Maltais said farmers are “concerned about higher input costs going into the next crop year.” These increases in prices for crop chemicals are making some rethink their acreage allocation. Some farmers are switching to wheat and other plants needing less fertilizer. Additionally, sources show some farmers are cutting application rates of certain fertilizers or not using fertilizer. As a result, some believe the price of fertilizer may continue to rise next year. Along with non-land costs being impacted, land costs increased from 2020 to 2021. As the August 17, Farmdocdaily showed, “The average cash rent in Illinois was $227 per acre, a $5 increase over 2020 levels.” Sources indicate the increases were the largest since 2013. The increase on cash rents may continue into 2022, further impacting farmers. Schnitkey, Paulson, Swanson and Zulauf said, “Increasing 2022 cash rents could lead to low and negative farmer returns if prices return to their average levels experienced in the late-2010s.” The rising prices pose threats to farmers’ incomes who are banking on good profits with crop prices increasing. The impact is being felt beyond farming as higher costs affect everyone with surging food prices. For example, in July, the Labor Department’s Consumer Price Index found costs for apples and milk rose 6% from last year. Meat prices went up about 11%. Some do not expect the rising costs to stop any time soon. Purdue University/CME Group’s Continue 4