Changes in the economics of grain production after record-high farm incomes in 2012 could mean a shift in demand and prices of crop inputs for the 2014 season, a Purdue Extension agricultural economist says.

The 2012 drought-ravaged crop left short supplies and high demand, which left farmers getting good prices for grain they were able to produce and high indemnities on insured crops that were destroyed.

High grain-farm incomes capped a series of years with abnormally high grain prices. But with some drought relief in major corn- and soybean-production states leading to expected higher yields and lower commodity prices, grain farmers can expect to see changes in what they pay for inputs, such as seed, fertilizers, fuels and chemicals, for the 2014 crop.

An apparent shift in market demand for corn and soybeans also could play a major role in what it will cost growers to produce the next crop, Alan Miller said.

"The markets are currently saying they want more soybeans and less corn in 2014, which changes the demand for inputs," he said. "For example, growers don't need as much nitrogen fertilizer if they are growing less corn. That ultimately will affect the prices of inputs."

Check current corn futures prices

Check current soybean futures prices