Source: Purdue University

Farmers will spend more to produce their 2011 crops but they're likely to make that up — and then some — from higher grain prices, say two Purdue University Extension specialists.

Which crops farmers choose to plant this season also will play a factor in the returns they'll earn, said Craig Dobbins and Bruce Erickson of Purdue's Department of Agricultural Economics. The numbers suggest a corn-soybean rotation is the best choice, with double-crop soybeans/wheat a good option for those farmers living in areas where that cropping system is viable.

"At this point in time, contribution margins — the difference between gross revenue and production costs — are really quite large," Dobbins said. "If one is looking for a place to expend energy from now until you can get out into the field and plant, I think one ought to focus that energy on protecting the margin that you've got in crop production today." 

Original news release