Farmers Paid More For Supplies In June

USAgNet reports that rising costs for fuel, feed and fertilizer propelled grain prices to all-time highs in June, raising the overall price of crops and livestock by 16% this year compared to last year. According to a USDA report, prices for farm products rose 1.9% in June alone. Grain staples including wheat and soybeans rose 1.6% during June. The price of livestock rose less than 1%.

The USDA report shows corn and soybean prices climbing rapidly since 2007. The cost for cattle and hogs has largely stagnated. Even though corn farmers seem able to pass on the higher cost of their fertilizers and fuel, meat companies said they haven’t been able to do the same.

Corn and soybean farmers, on the other hand, are seeing more demand than ever for their crops. While exports are increasing, so is domestic use of the crops for biofuels such as ethanol and biodiesel. Corn sold for an average of $5.61 a bushel in June, up 69% from $3.32 in 2007. Soybeans sold for $14.20 a bushel, nearly double last year’s figure of $7.56.