Agricultural economists with the University of Illinois and Ohio State University have taken the first stab at estimating 2023 production costs for corn and soybean production in Illinois. The estimates are specific to Illinois, but they can be an indication of what Nebraska crop producers can expect when pondering the economics of next year’s crops. Cost estimates for Nebraska crops should be available later this year from the University of Nebraska Center for Ag Profitability.
Not surprisingly, the economists project costs will rise next year. For example, total costs for corn production in Northern Illinois are projected to be $1,161 per acre, up from $1,054 this year. Total costs have increased $328 per acre, or 39 percent, since 2020. The higher costs are mostly fueled by increases in non-land related costs like fertilizer, seed, and chemicals, although cash rent is higher too. Smaller increases are projected for labor, fuel and oil, and equipment and repairs. Using projected prices of $5.30 for corn and $12.70 for soybeans, the economists project marginal profitability for next year. For more information regarding the estimates, visit the FarmDoc website at www.farmdoc.illinois.edu.