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This 5-minute farmdoc focuses on historical production costs for corn in central Illinois, and how then tend to move with corn prices and revenues. High commodity prices, excellent yields, and large ad hoc government programs have contributed to higher farm income levels in Illinois for the 2020 to 2022 crop years. However, production costs have also increased substantially leading to potential concerns over profitability in 2023 and 2024 if commodity prices decline while costs remain at current levels or have further increases. Historically, per acre costs for the main direct inputs to corn products have tended to follow corn prices and revenue levels. Corn prices generally trended upward from 2005 until 2012, fueled by rapid growth in demand for ethanol production as well as negative production shocks such as the 2012 drought. Fertilizer, seed, and pesticide costs also increased at a faster rate from the mid-2000s through 2014. Following that period, co
