USDA Corn and Soybean 2018 Cost of Production: Hope for Profits?
Commodity prices and farm incomes began to fall in 2014. Since that time real net farm income has fallen a little over 50%. As commodity prices fell, producers have found it imperative to reduce the cost of production. This has been particularly true for corn, soybean, and wheat producers.
The recent USDA projected 2018 costs of production for corn, soybeans, and wheat indicate that they expect the cost of producing these commodities to continue to fall in 2018. While they still project economic losses in 2018, the costs of production have fallen to a point that leaves hope for a return to economic profitability in 2018. (more…)