How much does an acre of corn cost?

Total non-land costs are projected at $755 per acre for corn, a $124 increase over the $631 per acres cost in 2021 (see Table 1). Similarly, soybean non-land costs are projected at $476 per acre, a $101 per acre increase over the 2021 level. Both corn and soybean costs will be at record levels.

Why was the price of corn so high in 2012?

The dry, scorching heat has had the most severe impact on corn crops. The drought and the fear that conditions could worsen, further pressuring crop yields, has triggered a 50% spike in the prices of corn futures over the past month to $7.79 per bushel.

Why did the price of corn go up in 2011?

Short-Term Shocks Exacerbate Already Tight World Market Conditions. Probably the most significant factor contributing to the increase in staple food prices in 2010 and 2011 was a series of adverse weather events.

What is the average profit per acre of corn?

Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. In this optimistic scenario, corn production would generate profits north of $95 per acre in a continuous corn rotation, and above $200 per acre following soybeans.

How much money do farmers make per acre of corn?

For 2020, the projected corn yield is 228 bushels per acre, the corn price is $4.25 per bushel, resulting in $969 per acre in crop revenue.

What is the highest corn price ever?

Corn futures on the Chicago Board of Trade (CBOT) topped $8 per bushel on Monday, the highest price in nearly a decade.

Why did wheat prices spike in 2012?

According to the U.S. Department of Agriculture (USDA), 80 percent of agricultural land in the United States experienced drought conditions in 2012. Extremely dry weather can lead to crop failure, which reduces supplies, and subsequently increases prices.

When did wheat rice corn and soybean prices rose 226 percent before crashing?

Between January 2002 and June 2008, this four-crop index rose 226 percent, compared with 130 percent for the overall food commodity index.

How does the US government use price supports for the agricultural industry?

Price Supports Cause Overproduction. By supporting prices above the market-clearing level, governments encourage farmers to expand production. To produce more, farmers apply more inputs per acre. They also compete against one another for the finite amount of farmland, bidding up its price.

How many bushels of corn can 1 acre produce?

For the 2020 crop year, USDA estimates U.S. corn yield to be 181.8 bushels per acre, surpassing the record-setting estimate of 178.5 bushels per acre from earlier this year.