By Andi Anderson
Farmers can now estimate the cost of producing key crops in 2025 with resources published in Ag Decision Maker's January edition.
The report, “Estimated Costs of Crop Production,” provides average production costs for crops like corn, corn silage, soybeans, alfalfa, and pasture maintenance. Interactive decision tools and online calculators enable farmers to input their data for tailored cost estimates.
Understanding production costs is critical before planting, especially with current tight profit margins in the crop market.
“The economic outlook for 2025 continues the pattern we ended 2024 with, where prices have fallen below production costs and any opportunities for profits will be limited this year, barring significant changes with either smaller production or greater usage,” said Chad Hart, professor in economics and economist with Iowa State University Extension and Outreach.
The report highlights a 2%-3% decrease in corn production costs, largely due to reduced fertilizer and chemical expenses compared to 2024. Conversely, soybean costs are projected to rise by 1%.
Per-bushel costs are expected to decline 1%-6%, influenced by higher trend yields. Land costs are anticipated to remain stable, while labor and machinery expenses are projected to increase by 3%-4%.
The report also details cost estimates for various crop rotations, including corn after corn, corn after soybeans, and corn following silage.
It outlines costs related to seed, fertilizer, labor, and machinery, with budgets for different production techniques such as low-till and strip-till methods for corn and soybeans. Both new and used machinery costs are included in these projections.
Production costs will vary depending on factors like soil quality and input use. The report treats labor as a fixed cost, as most farm labor in Iowa is provided by operators, family members, or permanent staff.
Additionally, the January Ag Decision Maker update includes tools to help farmers choose suitable farm bill programs. Options such as Price Loss Coverage and Agricultural Risk Coverage are available for individual farms or county-level plans, helping producers make informed decisions for their operations.
Photo Credit: gettyimages-frankoppermann
Categories: Iowa, Crops