University of Illinois Extension Analysis: Rising Corn and Soybean Production Costs Are Directly Related to Rising Oil Prices

Date Posted: May. 20, 2008

Urbana, IL—Between 2003 and 2007, the majority of corn and soybean production cost increases can be attributed to crude oil price increases, according to a new University of Illinois Extension study.

"If crude oil prices continue to rise, production costs for corn and soybeans likely will continue to rise," said Gary Schnitkey, a U of I Extension farm financial management specialist.

"Rising energy costs have brought into existence an era of high production costs for corn and soybeans.

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