The cost to produce an acre of corn in central Illinois in 2012 is pegged at $832 an acre, based on a study of more than 600 on-farm records.
The records come from state Farm Business Farm Management Associations (FBFM). The study was conducted by the University of Illinois' Dwight D. Raab.
Raab found variable costs to produce the 2012 crop are estimated at $386 an acre, an increase of $13 from 2011 (3.5%) with the majority of the rise coming from nitrogen and dry fertilizer ($4 increase) and seed ($7 gain).
Of the non-land costs, the greatest increases are in storage costs with a budgeted $5 increase and machinery depreciation with a budgeted $4 rise.
Total non-land costs are estimated at $587, a gain of $23 (4.1%) from 2011.
At a $5 selling price, it takes 117 bu. of corn to cover non-land costs.
Land costs are projected at $245 an acre, up 9.4% from 2011. At a $5 selling price, it takes 49 bushels to cover the land costs.
For comparison, 2012's $832 estimated cost is up $177 (27%) an acre compared to 2008, $46 (6%) compared to 2009, $115 (16%) versus 2010.