This article was originally published in the February 2021 edition of RightRisk News.
Land costs can make up a significant portion of the cost of production for many commodities. For example, see the 26 recently published University of Nebraska- Lincoln corn budgets for 2021 at farm.unl.edu. Land costs comprised an average of 30 percent of the total costs for growing corn across these estimates. Similarly, the summer pasture costs comprised 29 percent of the total annual herd costs across five cow-calf budgets published in 2019 at the same website.