The 2022 growing season may be a difficult year for producers to plan in terms of commodity prices and input costs.
The following table shows a comparison of break-even prices for Alabama row crops based on target yields for irrigated and nonirrigated production based on pricing and input costs at the end of 2021. While these prices were accurate when budgets were developed, costs have continued to increase for inputs, particularly fertilizer. In addition, commodity prices have also continued to increase. This table should be used as a guide, but any planting decisions should be based on individual farm operation costs.
Alabama Row Crop Breakeven Prices
|Irrigated Corn||Irrigated Cotton North||Irrigated Cotton South||Irrigated Peanuts||Irrigated Soybeans||Non-Irrigated Corn||Non-Irrigated Cotton North||Non-Irrigated Cotton South||Non-Irrigated Peanuts||Non-Irrigated Soybeans||Double-Crop Soybeans|
|Total Var Cost/acre||$1,211.27||$944.70||$920.78||$877.20||$622.06||$619.38||$724.29||$726.83||$665.38||$453.79||$320.29|
|Breakeven Price (Var. Cost)||$4.85||$0.73||$0.71||$350.88||$10.37||$5.16||$0.97||$0.86||$380.22||$10.08||$8.01|
|Breakeven Price (Total Cost)||$5.78||$0.96||$0.94||$457.74||$13.71||$5.81||$1.18||$1.05||$454.44||$11.58||$9.48|
In determining the budgets, land rental rates were not included. All other variable costs can be found in the specific row crop budgets in the Farm and Agribusiness Management section of the Alabama Extension website.
As with 2021, reduced stocks and increased exports have led to market prices for most commodities being favorable for covering variable costs of production if yield expectations are realized. Dryland cotton, however, may face the most uncertainty given that significant increases in inputs, particularly fertilizer, will push the break even price higher than in years past. Across all commodities, growers will need to plan to manage higher input costs, supply shortages and uncertainties of future trade and exports.