Ag Economic Insights says 2021 has been one of the best years in quite some time. However, that doesn’t mean there were no ups and downs or new and different challenges and opportunities.
The Agriculture Equipment Manufacturers organization says there’s little doubt that corn and soybean farmers will remember 2021 for many years. While the growing season turned out well for many, it sets the stage for much higher prices for everything from farm inputs to equipment to land rents and values. On the input side, everything from fuel to equipment to labor all started increasing dramatically.
Fertilizer prices took off at the fastest rate. Contributing factors include supply chain worries, inflationary concerns in the broader economy, high energy prices, and the prospect of very strong farmer demand.
Another interesting factor was the rising price of soybean oil from 30 cents a pound to 70 cents through most of 2021. Bakers in the U.S. want the EPA to help by rolling back biodiesel mandates.
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