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Study: Crop Production Costs Will Skyrocket

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A new study says the cost of crop production will skyrocket next year, and higher energy costs are the culprit. High seed prices and increased expenses to operate machinery are also part of the problem. Fertilizer costs are expected to jump more than 80 percent for corn and more than double for soybeans. Gary Schnitkey is a University of Illinois agricultural economist. He says there’s not much more farmers can do about the expenses.

SCHNITKEY: Farmers in this part of the world are pretty efficient already. They’ve done a lot of work on keeping their costs low.

Schnitkey says this is the highest increase in crop production costs since the 1970s. He says the only thing that could ease expenses for farmers is a drop in crude oil prices. But the report also concludes that crops should sell high enough that farmers can at least break even.

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