Ohio State’s Barry Ward took a look at possible crop profitability in 2017, and as you may imagine, the picture isn’t too bright.
“It’s not as good of an outlook as what we would like. Obviously the numbers are pretty negative at this point,” Ward said. “We’ve got a cost structure that’s still a legacy of what we had during those real profitable years. And with prices being lower as a result of maybe bumper crops around most of the Midwest, not Ohio necessarily, we’re looking at some very low to negative returns on all of our major row crops.
“If we look at some of the variable costs that we’re expecting for our three major crops — corn for instance — we’re right around $360 an acre for next year, at least our projects right now. And that’s just slightly lower than last year. The only real mover that we’re seeing right now is slightly lower fertilizer prices.”
Rent prices also remain a concern, especially with a lengthy turnaround in reevaluation of tax formulas.… Continue readingRead More »