Rising prices for fuel and fertilizer will increase corn and soybean production costs significantly this spring, according to the Food and Agriculture Policy Research Institute at the University of Missouri. A new FAPRI report cites increases in ammonium nitrate and anhydrous ammonia nitrogen prices of 2.5 to 3 cents per pound, phosphate prices of 1 to 2 cents per pound and potassium prices of approximately 5 to 6 cents per pound. Higher fuel prices will increase the cost of tillage and harvest by approximately $8.98 per acre for corn, $5.74 per acre for soybeans and $4.91 per acre for wheat, according to the FAPRI. Total production costs could increase by 15 to 19 percent above 2004 for corn and 20 to 22 percent for soybeans. For the complete FAPRI report, follow this link.

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