For 2020, the state of Illinois had an average soybean yield of 60 bushels per acre and an average corn yield of 192 bushels per acre. The rest of expected federal payments will be from CFAP, at about $30 an acre. endobj soybeans per acre, farms averaged $673 total revenue per acre and averaged $664 total cost per acre. Iowa State University A central Illinois corn farmer will make a $24 per acre profit in 2022 after paying for inputs and land costs, according to the latest crop budgets from the University of Illinois. Loans can be made through June 30 and this is money available, Tidgren said. Farmers need to manage nutrients and pesticides carefully to avoid adverse effects on the environment and to reduce the costs of purchased inputs. Non-land costs are based on historical expenses on Illinois farms, updated based on current and expected input price levels. Required fields are marked *. Guidelines are available here. The average cost per acre has been $238 (minimum = $215 during 1995; maximum = $260 during 1992). By comparing our estimate to the USDA's data on the average rental price per acre in Kane County, we can see that this rent would be 29 percent higher than the average rent in this county. Costs are projected to increase in 2023 from 2022 levels. previous year's 2.58 billion bushels. Units Nitrogen, $0.83 per pound 167 138.61 177 146.91 187 155.21 Phosphate, $0.75 per pound 63 47.25 69 51.75 77 57.75 Knowing costs is key, as it is to understand the assumptions behind the budgets used in the calculations. The farm record data utilized in this report were obtained from the Iowa Farm Business Association. It is hard to trim costs so you can make a better profit if you dont know your inputs. Decision Tools on the Ag Decision Maker website, ISU cost of production estimates for 2021, https://www.youtube.com/watch?v=xuxGMkKuzeE. Depreciation is estimated at 10% of current value of the machinery. The average cost per bushel has been between $1.25 and $1.95 in the cash corn division and $1.13 and $1.81 in the livestock corn division. Quick Stats Lite provides a more structured approach to get commonly requested statistics from our online database. In 2019/2020, Iowa corn growers grew an average of 178 bushels per acre. Your email address will not be published. But despite this volatility, corn farmers are still making some good profit from their corn farms, depending on the yield of that year. 518 Farm House Lane Still, you can apply up through June 30 at your bank or Farm Credit System lender that is participating in the program. This typically happens in agriculture after a period of higher returns, we return to those lower returns, he says. Iowa has led the Nation in corn production for the last 27 consecutive years and 42 of the last 43 years. 3: How much better is this field than the county average? In a year with low-corn-price predictions, every input must be reviewed to lower the cost of production. The state average soybean yield was 58.5 bushels per acre, down 4.5 bushels from 63.0 bushels per acre last year. At the same time, farm income was forecast to increase nationwide in 2020 (see Farm Income and Wealth Statistics for details). Inventory value gain or loss - change in value of crops or livestock sold due to differences in opening inventory price and final sale price. Weighting factors are based on the number of farms in each size group in the state, as computed from the most recent Census of Agriculture. Ways to Make Money Off Your Land Almost Immediately Rent plots to groups looking to build a community garden. Corn seed costs have increased 74% since the inception of the contest in 1987. Home Business ideas Agriculture Industry Crop Cultivation. #18. To see all exchange delays and terms of use, please see https://www.barchart.com/solutions/terms. In 2023, total costs are projected at $1,161 per acre, up from the $1,054 level in 2022. While projected returns may not justify an increase in cash rent, relatively high profitability in recent years and continuing high commodity prices likely lead to cash rent increases. Since 2020, total costs have increased from $833 per acre to $1,161, an increase of $328 per acre, or 39%. 5552 0 obj <> endobj The season average price for corn, projected in USDAs most recent supply and demand estimates, is $3.20, well below the $3.70 reference price that triggers PLC payments. John Deere Updates 7, 8 and 9 Series Tractors For Model Year 2024, AgDay TV Markets Now: Randy Martinson Talks About How the February Crop Insurance Prices May Impact Planting Decisions. Because of industrial, seed, planting, and other kinds of modifications, what used to take days to plant can now be done in minutes. Soybeans could trigger a $10-per-acre PLC or ARC-CO payment and CFAP would bring another $12 an acre. Projected returns range from $13.50 per acre for dryland corn to $194.55 per acre for irrigated corn. %PDF-1.6 % To answer you have to make a lot of assumptions. Projected prices are $5.30 per bushel for corn and $12.70 for soybeans, near current 2023 fall bids. More than 200 counties across the Corn Belt had county average rental rates above $200 per acre, with . . How many farmers know what their inputs are, let alone their costs per acre or per bushel? Non-land costs are projected to be higher in 2023 than in 2022, as is illustrated for corn grown in northern Illinois in Figure 1. Special Tabulations and Restricted Microdata, 02/15/23 Still time to respond to the 2022 Census of Agriculture, USDA to follow up with producers who have not yet responded, 02/15/23 Still time to respond to the 2022 Puerto Rico Census of Agriculture, USDA to follow-up with producers who have not yet responded (Puerto Rico - English), 01/31/23 United States cattle inventory down 3%, 01/30/23 2022 Census of Agriculture due next week Feb. 6, 01/12/23 Corn and soybean production down in 2022, USDA reports In the corn divisions, depending upon year, the average maximum and minimum cost per acre is $215 to $260 in the cash grain division, and $187 to $234 in the dairy and livestock division (Table 1). 1.494 billion bushels of Iowa corn in the 2018/19 marketing year went into corn processing used in the wet mill industry for food and industrials usage. <>>> The 1973-75, 2010-2012, and 2019-2021 weighted-average land value maps are color coded from light to dark, with the darkest colors showing the highest average land values. Gross revenue (market revenue plus government payments), variable cost, and overhead cost per acre for rotation corn on average productivity soil is illustrated in Figure 2. The publication also includes budgets for alfalfa hay establishment with an oat companion crop and by direct seeding. The total cost per bushel of soybeans is projected at $8.72 for non-herbicide-tolerant beans at 56 bpa, according to the report.". <> At projected cost levels, per bushel prices of $5.30 for corn and $12.75 for soybeans result in marginal profitability, similar to levels experienced from 2014 to 2019. The tables are calculated on a per acre basis. Interest rates, energy prices, and wage rates continue to increase, and supply issues that began in Covid have not been resolved. That's anywhere from $2,500 to more than $10,000 per acre gross profit! The most profitable farm made $275 per acre while the least profitable lost $222 per acre from planted corn. A decline in commodity price likely would not be associated with similar decreases in cost levels, reducing already narrow margins. Non-land costs for 2019 are projected at $369 per acre, an increase of $15 per acre over 2018 costs. Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. Contract grazing: A flat rate is paid per animal per month or per day by the livestock owner to the landowner. Nearly 30,000 kernels of corn are planted per planted acre, and corn yields can be close to 200 bushels per acre in a good year on high CSR land. For northern Illinois, the break-even corn price is $5.34 per bushel on cash rented land. Copyright 1995-document.write(new Date().getFullYear()) For soybeans, the yield is pegged at 55 bushels an acre with an average selling price of $8.20 per bushel. Willows . Is this correct? Land costs account for 44% of total costs of soybean production, and variable costs account for an additional 42%. The average yield in their database is 60 bushels (beans) and 204 bushels (corn). Corn costs were much smoother than prices. 7 . The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. Until that point, the risks of low returns from price declines will be large. Farmer returns are projected to be lower for 2023, as is illustrated in Figure 2, which shows farmer returns for central Illinois farmland with high productivity farmland. For soybeans, with $621 in income, total direct costs are $485. There has been an upward trend in the The 2023 farmer return is projected to be close to the average from 2013 to 2019 when the return averaged $29 per acre. endstream endobj 5553 0 obj <>/Metadata 97 0 R/Names 5580 0 R/Outlines 114 0 R/Pages 5548 0 R/StructTreeRoot 118 0 R/Type/Catalog/ViewerPreferences<>>> endobj 5554 0 obj <. x=8z98[; @&bg6;bfV_de{HEv:r'@;EbIXoo.(~? So any change requires processor buy-in. Learn more. The lowest returns are projected for southern Illinois, with farmer returns of -$63 per acre for corn and -$61 per acre for soybean. 710,250 miles. Even with those, the net return on beans is projected at a negative $15 an acre. Variable cost per acre peaked in 2013 at $462 per acre ($2.83 per bushel), and is projected to be $408 per acre ($2.27 per bushel) in 2021. At the farm level, the study predicts it could mean over $40,000 per acre in revenue, depending on quality and yield. The 2020-2021 national average corn price, which will be finalized on Sept. 30, is now estimated at $4.40 per bushel. Your email address will not be published. hb```b``fb`e`0ed@ Aa,Y 4>hNem}AS1d03r3yU b<4,dPC765b/N`` r::y;L}/X8Q!7j0c|xq)f$=x>dC1^ ]< LK@&q;k !|HJ``*5 |pU_D u Z!, ~ Providing Timely, Accurate and Useful Statistics in Service to U.S. Agriculture ~, County and District Geographic Boundaries, Crop Condition and Soil Moisture Analytics, Agricultural Statistics Board Corrections, Still time to respond to the 2022 Census of Agriculture, USDA to follow up with producers who have not yet responded, Still time to respond to the 2022 Puerto Rico Census of Agriculture, USDA to follow-up with producers who have not yet responded (Puerto Rico - English), 2022 Census of Agriculture due next week Feb. 6, Corn and soybean production down in 2022, USDA reports 1. Table 2 shows actual results for northern Illinois for 2021, along with projections for 2022 and 2023. I do think were going to see more interest in flex rents, Johnson said. For example, if the custom rate for chopping, hauling and storing silage is $10.00/ton, the value of the standing silage to the buyer is reduced to $41.23 - $10.00 = $31.23 per ton, or $624.60 per acre. Overall, costs have increased dramatically since 2020, from $577 to $860, an increase of $283 per acre, or a 49% increase. Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Briomass Crop Budget Tool Miscanthus & Switchgrass, Illinois Soil Productivity & Yield Utilities, Farmland LEasing Facts Sheets & Pricing Information, Schnitkey, G., K. Swanson, C. Zulauf and J. Baltz. 3 0 obj of Science and Technology With an expected harvest price of $3.65, the anticipated market revenue is $657 per acre. Schnitkey, G., K. Swanson, N. Paulson, C. Zulauf, J. Coppess and J. Baltz. Variable costs represent just over half of the costs of production, and nitrogen and seed costs account for about 43% of the variable costs. If your fuel cost last year was $2.50/gallon and this year it is $5.00/gallon it will only cost you a little over $3 more per acre and if you get 2 tons/acre first cutting, .How Much Does it Cost to Ship Cattle? With an average direct cost of $751 per acre of corn and $900 in sales, the farmer has about $149 left. Member. Interest is not included. This is a record yield and up substantially from 2020's average yield of 177 bushels per acre. The break-even price to cover total costs less other revenue for soybean in 2022 is projected at $11.06 per bushel. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. For a detailed statement, please see the University of Illinois Copyright Information and Policies here. He estimates the average cash rent in Iowa this year at $222 per acre, which has changed little over the past four years. For farmers, that self-employment income is reported on their income tax Schedule F. Because many farmers didnt report income last year, PPP, administered by the Small Business Administration, hasnt been as useful as CFAP, Tidgren said. Return on equity - net farm income minus value of operator and family labor, divided by net worth. In this scenario, production of herbicide tolerant and non-herbicide tolerant soybean would be profitable for all target yields considered in the report. This can be viewed in Figure 2. Schnitkey, G. and K. Swanson. Nationally, the average is 172 bushels per acre. Non-land costs are projected to be higher in 2023 than in 2022, as is illustrated for corn grown in northern Illinois in Figure 1. Pasture cash rental rates can be found in Iowa State University's "Cash Rental Rates for Iowa 2021 Survey." 2021 rental rates for improved permanent pasture range from $69-$98 per acre per year, depending on your district. When using the ISU cost of production estimates for 2021, keep several things in mind. Given higher costs, break-even levels will be much higher. The cost estimates are representative of average costs for farms in Iowa. This measures the total production per farm. U.S. farmland values remained high in 2020, averaging $3,160 per acre, a small decrease of 0.8 percent compared with 2019. Those break-even prices are above average prices received from 2014 to 2019 ($3.66 per bushel for corn and $9.69 for soybeans). These estimates compare to national average prices of $3.56 per bushel in 2019-2020, $3.61 per bushel for both 2018-2019 and 2015-2016 and $3.36 per bushel in both 2017-2018 and 2016-2017. Explore Statistics By State By Subject Crops and Plants Demographics Economic and Prices Environmental Livestock and Animals Research, Science, and Technology Charts and Maps Corn has been grown across Iowa for more than 150 years, nearly 30,000 kernels are planted per acre, and corn yields can be close to 200 bushels per acre in a good year on high CSR land. The state average is 1,000 to 1,200 dozen per acre or 200 to 240 crates .
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