Mar 18, 2021
Agriculture production costs on the rise

Costs for agricultural inputs and crop protection agents are on the rise, reports North American Potato Market News (NAPMN).

In the March 17 edition, NAPMN highlights that prices for fuel, nitrogen, phosphate, insecticides and herbicides are higher than a year ago.

“If we use the 2020 University of Idaho cost and returns estimate for southwestern Idaho as a base, we can roughly estimate the impact on a per acre and per cwt basis,” NAPMN wrote. “We adjusted the costs as follows: nitrogen fertilizer +14%; phosphate fertilizer +52%, potash fertilizer +13%, chemicals +10% and diesel (fuel) +24%. For a quick comparison, we left yield, seed, custom application, irrigation, labor and machinery costs unchanged. Total costs increased by $132 per acre to $2,683. On a per cwt basis, costs increased $0.25 per cwt, lifting the break-even price to $7.76 per cwt.”

In addition, the national average for H-2A guestworker Adverse Effect Wage Rate (AEWR) is up 4.5% in 2021, although exact rates vary by state.

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