Take, for example, the Central CRD in Illinois. In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. 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). The estimated cost of production for continuous corn is $3.88 per bushel for a target yield of 166 bushels per acre, and it goes down to $3.82 for target yields of 184 and 202 bushels per acre. Machinery cost per crop acre - total of machinery repairs, fuel, custom machine hire, utilities, machinery depreciation and auto expense, less 75% of all custom hire income received, divided by crop acres. Required fields are marked *. The silage . AgDay TV Markets Now: Randy Martinson of Martinson Ag Talks About How the February Crop Insurance Prices May Impact Planting Decisions. Variable costs represent just over half of the costs of production, and nitrogen and seed costs account for about 43% of the variable costs. Revenue and Costs for Illinois Grain Crops, Actual for 2015 through 2021, Projected 2022. Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, August 2, 2022. Decision Tools on the Ag Decision Maker website, ISU cost of production estimates for 2021, https://www.youtube.com/watch?v=xuxGMkKuzeE. For corn, land costs account for about one-third of total costs of production (Figure 2). Your email address will not be published. Values of $187, $222, and $256 per acre rent charges for the low, medium, and high quality land were assumed. Similarly, a projected 2014 soybean price of $12.70 compares to an average price of $9.69 from 2014 to 2019. corn and 59 bu. 2021 farmer, landlord rent discussions to get interesting. All Rights Reserved. Contact a specialist. Copyright 1995-document.write(new Date().getFullYear()) However, the differences in crop returns are relatively small. The break-even price to cover total costs less other revenue for soybean in 2022 is projected at $11.06 per bushel. Having considered all variables, experts have come to the conclusion that farms averaged $673 total revenue per acre and averaged $664 total cost per acre. Dec 9, 2014. The Guide also reports expected variable costs of $403 per acre. The average corn yield in the United States was estimated at a record 177 bushels per acre, 5.6 bushels above the 2020 yield of 171.4. All these serve to influence what a farmer can make from an acre of corn. Given higher costs, break-even levels for northern Illinois for corn are $5.34 per bushel on cash rented land. At $75 per ton, that's an extra $40 per acre in profit to the grower. Woody ornamentals. of Science and Technology Non-land costs are projected to be $860 in 2023, up from $758 in 2022. Phosphorus and potassium were charged, respectively, at $.39 and $.30 per pound. Projected returns range from $13.50 per acre for dryland corn to $194.55 per acre for irrigated corn. holding off on buying and working with what I have. "Nitrogen Fertilizer Outlook for 2023 Decisions." The wage rate used for operator labor was $2,500 per month. Gross income = $950 / acre 4. Home Business ideas Agriculture Industry Crop Cultivation. It will be on corn for the 2020 crop but not received until October 2021.. endobj A decline in commodity price likely would not be associated with similar decreases in cost levels, reducing already narrow margins. x=8z98[; @&bg6;bfV_de{HEv:r'@;EbIXoo.(~? 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? Iowa's corn for grain yield is estimated at 178 bushels per acre. Data for ending assets and liabilities represent those of the operator only, and do not include the value of rented land. Eligibility is determined in part by last years payroll and self-employment income. This is a record yield and up substantially from 2020's average yield of 177 bushels per acre. That's anywhere from $2,500 to more than $10,000 per acre gross profit! Non-land costs for 2019 are projected at $369 per acre, an increase of $15 per acre over 2018 costs. average profit per acre of corn in iowa. hb```b``fb`e`0ed@ Aa,Y 4>hNem}AS1d03r3yU b<4,dPC765b/N`` r::y;L}/X8Q!7j0c|xq)f$=x>dC1^ ]< LK@&q;k !|HJ``*5 |pU_D u Z!, 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 Those crop costs are coming from the ISU Estimated Cost of Crop Production publication released in January 2020 for corn following soybeans and soybeans following corn rotations. To continue using this site and its features, you will need to use a newer browser. Sac county had the largest year-over-year increase of 5.8 bushels per acre while Plymouth County saw the largest decrease of . It allows you to customize your query by commodity, location, or time period. These variations impact US state corn production.. Each is important for creating an accurate corn yield forecast. Government programs called Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) can help farmers protect against the risks of weather and prices. Illinois Crop Budgets, 2023. Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, August 2, 2022. Some speculate this could become a trend based on a hypothesis in how the disease is transmitted. With an average direct cost of $751 per acre of corn and $900 in sales, the farmer has about $149 left. I would think that corn seed with CRW resistance would be higher in cost. Nitrogen price is projected stable at $.34 per pound in 2021, but total nitrogen costs are projected to go up by 6 to 11% reflecting the higher application rates recommended by the ISU Corn Nitrogen Rate Calculator. In this scenario, production of herbicide tolerant and non-herbicide tolerant soybean would be profitable for all target yields considered in the report. For corn, he used an estimated yield of 198 bushels and a price of $3.20 per bushel. Answer (1 of 4): The answer varies from farm to farm, field to field and year to year. Explore Statistics By State By Subject Crops and Plants Demographics Economic and Prices Environmental Livestock and Animals Research, Science, and Technology Charts and Maps Use the 68-95-99.7 Rule (Empirical Rule) to answer the following questions. All https://www.barchart.com/solutions/ is provided by Barchart Solutions. To answer you have to make a lot of assumptions. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. A projected $5.30 corn price for 2023 compares to a $3.66 price from 2014 to 2019. An increase in overhead cost per acre was made in the 2021 budgets, going from $20 to $25 per acre. Risks will exist throughout the autumn as many decisions concerning 2023 production are made, and input prices are locked in. Interest is not included. 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. 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. 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. %PDF-1.6 % As of Friday, $130 billion hadnt been spent, Tidgren said. 14 percent or 2.065 billion bushels of Iowa corn was exported out of the state in the 2018/19 marketing year. In recent years, corn profits have been significantly more volatile than in years past, thus affecting the income of farmers per acre. This early in the season, Johnsons estimates are estimates, of course. As farmers and landowners negotiate rents for next year, Johnson said he believes 2021 could be even more challenging. Knowing costs is key, as it is to understand the assumptions behind the budgets used in the calculations. There has been an upward trend in the Corn seed costs are expected to increase by 2% to $262 per bag. In 2023, farmer returns are projected at $25 per acre, well below levels for 2020 to 2022, when farmer returns averaged $232 per acre. Is this correct? 2023 Meredith Corporation. All records were kept on the accrual, or inventory, basis. 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. Corn: 13 cents per bushel in charge; then 4 cents per month prorated daily through August 31, 2023. 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. More details on 2023 budgets are available in the management section of farmdoc through two documents: Schnitkey, G. and K. Swanson. Egg prices peaked in December at around $5.43, then decreased 52% to $2.61 per dozen in February thanks to bird flu. More than 200 counties across the Corn Belt had county average rental rates above $200 per acre, with . How can I make money with 10 acres? Lower commodity prices are possible from any number of causes. A lot more money is coming from the government than probably any time in the last 20 years, says Steve Johnson, a farm and ag business management specialist with ISU. For the 2020 crop year, USDA estimates U.S. corn yield to be 181.8 bushels per acre , surpassing the previous record-setting estimate of 178.5 bushels per acre earlier this year. Section 207(f)(2) of the E-Government Act of 2002 requires federal agencies to develop an inventory of information to be published on their Web sites, establish a schedule for publishing information, make those schedules available for public comment, and post the schedules and priorities on the Web site. Iowa farmers averaged 205 bushels per acre on corn for grain, the Jan. 12 report noted. In northern Illinois, for example, corn is projected to have a -$11 per acre return, while soybeans are projected to have an $11 return, a difference of $22 per acre. Overall, costs have increased dramatically since 2020, from $577 to $860, an increase of $283 per acre, or a 49% increase. While advancements in technology make producing corn more efficient, there are still commodity markets that must be contended with to make the industry more profitable. Landscaping trees and shrubs. The most recent USDA projections for 2021/22, published in October 2020, put the average US farm prices for corn and soybeans at $3.65 and $10.00. At the landowner webinar, Kristine Tidgren, director of ISUs Center for Agricultural Law and Taxation, covered the highlights of the nearly $700 billion program. soybeans per acre, farms averaged $673 total revenue per acre and averaged $664 total cost per acre. Your email address will not be published. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 18 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 1 0 obj Table 2 shows actual results for northern Illinois for 2021, along with projections for 2022 and 2023. 3: How much better is this field than the county average? By accessing or using the Service you agree to be bound by these Terms. Those differences are not likely to change normal rotational decisions. The graph below shows the US national average winter wheat yield in bushels per acre as reported by the USDA NASS . Have a specific question for one of our subject experts? How many farmers know what their inputs are, let alone their costs per acre or per bushel? Corn stocks down, soybean stocks down from year earlier Member. Schnitkey, G. and K. Swanson. Corn stocks down, soybean stocks down from year earlier State Averages Total costs to produce corn for all combined areas of the state were $868 per acre. Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021-22, respectively. previous year's 2.58 billion bushels. The most profitable farm made $275 per acre while the least profitable lost $222 per acre. Non-land costs are based on historical expenses on Illinois farms, updated based on current and expected input price levels. How about ag-chem and the application costs some of which might be biannual. In the livestock corn division, the average cost per acre is $206 (minimum = $186 during 1993; maximum = $235 during 1987). Soybeans could trigger a $10-per-acre PLC or ARC-CO payment and CFAP would bring another $12 an acre. Sell local honey at farmers markets. For northern Illinois, the break-even corn price is $5.34 per bushel on cash rented land. For corn following soybeans, the following targets were used to figure the gross revenue estimate of slightly more than $600 per acre for a farmer who has 50% crop loss. Farm Business Association data on farm family living expenses. <> As shown in Table 2, most costs are projected to increase. It doesn't appear that farmland prices are slowing down anytime soon either with the steady increase in prices as seen in the graph above. In an average year, Iowa produces more corn than most COUNTRIES! The rest of expected federal payments will be from CFAP, at about $30 an acre. Average four-crop gross income per acre = approximately $790 per acre . _. <> And those optimum populations increased yield of marketable ears by an average of 0.53 tons per acre. Table 1 provides corn and soybean budgets for four regions of Illinois: More detailed budgets are available here in the management section of farmdoc. A string of great crops from 2010-2013. ~ 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 Cost of production in 2018 is predicted to be $645 per acre . Projected prices are $5.30 per bushel for corn and $12.70 for soybeans, near current 2023 fall bids. The most profitable farm made $275 per acre while the least profitable lost $222 per acre from planted corn. It will take nearly all of that to reach Johnson's projected net return to the farmer of $86.60 an acre for corn. U.S. farmland values remained high in 2020, averaging $3,160 per acre, a small decrease of 0.8 percent compared with 2019. Iowa State University Extension and Outreach, Managing farm costs key to profitability in 2021. it gets. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. Iowa State University The United States produced 14.2 billion bushels of corn in 2019. The Illinois Central CRD has a 210.4 bushel per acre average corn yield, a 64.0 bushel per acre soybean yield, and a 3.29 corn-to-soybean yield ratio (3.29 = 210.4 corn yield / 64.0 soybean yield). for the fresh market and 4 to 6 tons per acre for processing. U.S. corn production is unchanged from the previous month at 14,506.8 million bushels, based on a national average yield of 175.8 bushels per acre. The cost estimates are representative of average costs for farms in Iowa. However, the only certainty about future prices is that they will continue to change until their expiration date, and they could plummet as fast as they rallied. Winter Wheat Seedings up for 2023, 12/13/22 NASS to publish milk production data in updated data dissemination format, 11/28/22 USDA-NASS Crop Progress report delayed until Nov. 29, 10/28/22 NASS reinstates Cost of Pollination survey, 09/06/22 NASS to review acreage information, 09/01/22 USDA NASS reschedules 2021 Conservation Practice Adoption Motivations data highlights release, 05/06/22 Respond Now to the 2022 Census of Agriculture, 08/05/20 The NASS Mission: We do it for you, 04/11/19 2017 Census of Agriculture Highlight Series Farms and Land in Farms, 04/11/19 2017 Census of Agriculture Highlight Series Economics, 04/11/19 2017 Census of Agriculture Highlight Series Demographics, 02/08/23 Crop Production (February 2023), 01/31/23 Cattle & Sheep and Goats (January 2023), 12/23/22 Quarterly Hogs and Pigs (December 2022), 12/15/22 2021 Certified Organics (December 2022), Talking About NASS - A guide for partners and stakeholders, USDA and NASS Anti-Harassment Policy Statement, REE Reasonable Accommodations and Personal Assistance Services, Safeguarding America's Agricultural Statistics Report and Video, Agriculture Counts - The Founding and Evolution of the National Agricultural Statistics Service 1957-2007, Hours: 7:30 a.m. - 4:00 p.m. Eastern Time Monday - Friday, except federal holidays Toll-Free: (800) 727-9540, Hours: 9:00 a.m. - 5:30 p.m. Eastern Time Monday - Friday, except federal holidays Toll-Free: (833) One-USDA Net returns to corn following soybeans would range from $55 to $74 per acre under conventional tillage, and average $82 and $75, respectively, under strip tillage and no-till. Loans can be made through June 30 and this is money available, Tidgren said. Written byAlejandro Plastina,Extension Economist,plastina@iastate.edu. However, vegetable processors choose the hybrid, provide seed of that hybrid, and set the population size. The factors that are causing those cost increases are inflation, including wages and labor, fuel and just general supply disruptions further exasperated by the Ukrainian Russian war, he says. In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. You list seed costs as the same for corn after corn rotation as corn after soybeans. At a Farmland Owners Update webinar, Johnson said he estimates that Iowa farmers, on average, will receive about $95 an acre in federal payments for the 2020 corn crop. This helped in seeking the demand of people more than the previous 40 years. Contract grazing: A flat rate is paid per animal per month or per day by the livestock owner to the landowner. Total costs of corn and soybean production per acre are expected to increase, respectively, by 2.1% 3.4% and 2.6% in 2021. This typically happens in agriculture after a period of higher returns, we return to those lower returns, he says. The soybean price of $8.20 is only 20 under the soybean reference price of $8.40. 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. 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. For soybeans, the yield is pegged at 55 bushels an acre with an average selling price of $8.20 per bushel. In this optimistic scenario, corn production would generate profits north of $95 per acre in a continuous corn rotation, and above $200 per acre following soybeans. Another grower and customer favorite is Elephant garlic, whose large, mild cloves bring $6-$8 per pound. Website: https://ask.usda.gov/s/, June Turner, Director Email: / Phone: (202) 720-8257, Find contact information for Regional and State Field Offices. For all regions of Illinois, the relatively high returns experienced in recent years are projected to end in 2023. Winter is a great time for farm operators to concentrate on calculating their own costs of crop production, not only because they have more control over costs than crop prices, but also because knowing their break-even prices might ease the struggle to lock-in profits before harvest time. endobj 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. Several notes concerning the budgets shown in Table 1 are: Farmer returns represent the amount remaining for the farmer after paying all financial costs, with a land charge at the average projected cash rent. An average corn fertilizer program in Southern Minnesota is expected to cost about $250 to $300 per acre in 2022, as compared to an estimated $140 per acre in 2021 and $121 per acre in 2020, based on South Central College (SCC) Farm Business Management (FBM) data. Current futures prices seem to indicate that corn and soybean prices might average $3.90 and $9.50 per bushel in 2020-21, respectively. Iowa ranked first in corn production in 2020 despite both drought and damaging derecho occurring during the season.
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