Cotton Producer Survey and Farmland Values Go Higher
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.
**U.S. cotton producers intend to plant 12 million cotton acres this spring, up 7.3% from 2021.
The National Cotton Council’s Annual Early Season Planting Intentions Survey, mailed to producers across the 17-state Cotton Belt, asked for the number of acres devoted to cotton in 2021 and the acres planned for the coming season.
Although cotton prices are higher, higher input prices and supply chain disruptions have resulted in significant increases in production costs for 2022.
**Farmland values continued to increase through the end of 2021.
Even with uncertainty around input costs, lenders expect favorable economic conditions to support farm finances and lead to further gains in farmland values in 2022.
The possibility of weaker ag income and higher interest rates remain risks for farmland markets.
Despite that, the ag sector appears to be well-positioned.
**For the seventh straight week, the nation's average gas price climbed, up 4.6 cents from a week ago to $3.47 per gallon.
The national average is up 16.5 cents from a month ago and 97.2 cents per gallon higher than a year ago.
The national average price of DIESEL increased 8.9 cents from last week to $3.87 per gallon, the highest since 2014.
This as oil prices continue to push higher, reaching $94 per barrel over concerns about the possible threat that Russia may invade Ukraine.
