Rising Fuel and Input Prices: Adjusting Enterprise Budgets and Tracking Cost of Production
Commodity prices have risen over the last several months, and so have major input expenses, such as fuel, fertilizer, and even the price of pesticides. When crop prices rise, profits do not always follow incrementally. The whole enterprise picture must be brought into focus, accounting for input price and expense adjustments that may offset gains on the revenue side of the budgets. In this article, Extension Educator and Farm and Ranch Management Analyst Glennis McClure analyzes the current cost of production and breakeven estimates to help producers make informed farm management decisions in 2021.