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Lower energy needs hold soybean costs relatively steady.
Energy prices bouncing up and down like a pickup's wheels in a road full of potholes give 2001 crop-cost forecasters migraine headaches.
"Our current best guess is nitrogen fertilizer prices will run 30 to 35% higher than last year," says Mike Duffy, Iowa State University economist.
"We're projecting LP gas for corn drying at $1 per gallon. That's up from 57 cents projected for drying the 2000 corn crop.
"Higher nitrogen prices boost costs to grow corn $6 to $8 per acre relative to last year," says Duffy. "Higher expected LP costs tack another $8 to $12 onto the bill. Those two factors cornbined hike expected costs to grow corn $14 to $20 an acre relative to last year.
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