Even though we are still in the midst of the growing season, we are already starting to see attention placed on next year’s potential production. While it is still way too early to begin to predict acres or yields for the 2022 planting season, we are seeing some factors that could end up impacting production.
The main one of these is cost of production. Some producers across the United States have already started to look at locking in their new crop inputs and seeing large increases.
Initial projections indicate a $100 per acre increase in corn production next year from this year. Some instances indicate this will increase by $200 an acre.
The majority of this is being credited to fertilizer costs. These aren't indicative of the entire Corn Belt but do start to raise questions on balance sheet possibilities.
Another factor closely monitored across the United States is land values. Ever since the rally in commodities began a year ago, we have seen land values appreciate as well.
Reports have come...