Oil and natural gas prices are concerning farmers this spring planting season, according to Lori Wilcox, analyst with the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri. The outlook is for continued high prices through the growing season.

"Per acre costs for fuel and fertilizer for growing corn could be up 15-19% from 2004," Wilcox said in a university release. "Fuel and fertilizer costs this year could range from $60 to $103 per acre." Per acre costs for soybeans could range from $23 to $34 per acre, Wilcox says. Costs for wheat now range from $34 to $43 per acre, an expected increase of more than 14% from 2004.

Wilcox noted these fuel costs are for production, not for hauling and drying of the crops.

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Assuming normal yields, on a per bushel basis, the increased costs could be 8-9 cents per bushel for corn, 10-12 cents for soybeans, and 8-13 cents for wheat.

No relief in sight

"The current outlook does not include any relief from higher gasoline and diesel prices," she says. "Projections for April through September are for retail prices of $2.28 per gallon of gasoline and $2.24 for diesel." In addition, the global outlook for fuel demand and supplies this spring is tighter than energy analysts predicted in December.

Learn more in a new report from FAPRI: Fertilizer and Fuel Outlook for Spring 2005 available on the FAPRI Web site.