The Agricultural & Food Policy Center (AFPC) at Texas A&M University released a new study this week on the economic impact of higher input costs on representative farms. The study estimated the increase of input costs across the country based on producer surveys of the actual increase that producers are paying for inputs.
The increases are:
*16.58 percent for seed,
*133.62 percent for nitrogen fertilizer,
*92.75 percent for phosphorus and potassium fertilizer,
*64.23 percent for herbicide,
*40.25 percent for insecticide,
*36.02 percent for fungicide and
*86.63 percent for fuel and lube.
AFPC used the price projections to estimate the change in net cash farm income (NCFI). Feed grain and oilseed farms see an estimated average decrease in NCFI of $176.64 per acre from 2021 to 2022. Wheat farms see a loss of $83.48 per acre and cotton farms a loss of $175.01.
All grain and oilseed, wheat, and cotton farms are predicted to still have positive NCFI for 2022 due to higher prices.
To read the entire report click here.