Connect with us

Local News

Several reasons causing higher agriculture commodity prices

Published

on

Little Rock, Arkansas — Due to spiraling input costs, unpredictable weather, supply chain woes, and the impacts of the pandemic, Arkansas farmers have received little good news in recent years. Higher commodity prices, which are predicted for the coming growing season partly impacted by the war in Ukraine are positive for farmers.

Economists with the University of Arkansas System Division of Agriculture have revised enterprise crop budgets for the 2022 growing season, adjusting for significant changes in fuel, fertilizer, and commodity prices.

According to the Chicago Board of Trade and Intercontinental Exchange, winter wheat futures are now trading at $10.93 a bushel, a 24.4% spike since February. Corn is at $6.81 per bushel, an 8.4% increase, while soybeans are up 0.2% at $14.90 a bushel.

Cotton is up 6-cents per pound, a 5.5% uptick and rice is now trading 5.7% higher this month. Inflation and demand are other factors that are driving prices higher, according to economists.

Farmers are expected to face strong economic headwinds as the planting season begins in the coming weeks, despite the commodity price increases.

“Recent sharp increases in fertilizer and fuel prices since that time have significantly altered expectations related to the costs and returns of crop production for the current growing season,” said John Anderson, head of the Agricultural Economics and Agribusiness Department for both the University of Arkansas System Division of Agriculture and the Dale Bumpers College of Agricultural, Food, and Life Sciences. “We want to be sure our tools provide the most updated variables to enable farmers to obtain the most accurate assessment of the potential financial impact of changing input prices.”

 

Advertisement

Trending