Immediate Release:
Thursday, April 24, 2008
Nebraska Corn Board contacts:
Kelly Brunkhorst: 800.632.6761 or 402.366.5243
Jon Holzfaster: 308.239.4206
Nebraska Corn Farmers Face Rising Input Costs
Lincoln, NE – With Nebraska’s corn producers beginning to plant an estimated 8.8 million acres of corn, producers are being hit by increased input costs according to the Nebraska Corn Board. Overall planting expenses are up seventeen to eighteen percent, led by sharp price increases for fuel and fertilizer.
“Diesel fuel prices are up this spring by over thirty percent, phosphorus prices are one-hundred eighty to two hundred percent higher compared to last year and anhydrous has continued its steady rise, up sixty to seventy percent since 2006. Anhydrous ammonia was over $700 per ton this spring, phosphorus was over $1,000 per ton and diesel is over $4.00 a gallon,” said Kelly Brunkhorst, Ag Program Manager of the Nebraska Corn Board.
One positive aspect for some Nebraska producers has been the usage of livestock manure.
“With the large increases we have seen in fertilizer prices, the usage of manure continues to be very economical for the corn producer, and gives an economic boost to the livestock producer,” said Brunkhorst. “That is another one of the reasons to continue to have a strong livestock industry here in Nebraska.”
Jon Holzfaster, chairman of the Nebraska Corn Board said that even with the increase in the prices of commodities, producers will continue to have to be diligent in risk management due to the large increases in input prices.
“Even though we are seeing cash corn trading above the five dollar per bushel range, you have to also take into account the increases in seed, energy, fertilizer and overhead costs that we have this year. And unfortunately corn producers can’t raise the price of corn according to their input costs.”
The Nebraska Corn Board is a self-help program, funded and managed by Nebraska corn farmers. Producers invest in the program at a rate of ¼ of a cent per bushel of corn sold. Nebraska corn checkoff funds are invested in programs of market development, research and education.
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