By Bob Steenson, bsteenson@charlescitypress.com The northeast corner of the state had the highest average yield in corn and soybeans last year, although Floyd County fell just short of the top tier in both categories. 1 0 obj In any case, farm operators can always improve their profitability or limit losses by focusing on managing costs and using their break-even estimations to implement a tailored marketing plan. Non-land costs are based on historical expenses on Illinois farms, updated based on current and expected input price levels. 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. Bonsai plants. 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 annual rate of corn yield improvement more than doubled to about 1.9 bushels per acre per year and has continued at that steady rate ever since, sustained primarily by continued improvements in genetics and crop production technologies (Fig. corn takes the worst figure in the study to the third best at $144 per acre profit . Take, for example, the Central CRD in Illinois. It will take nearly all of that to reach Johnsons projected net return to the farmer of $86.60 an acre for corn. The Ukraine-Russia war has further clouded the outlook and worsened supply chain issues. 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. We are projecting higher fertilizer costs in 2023. Projected prices are $5.30 per bushel for corn and $12.70 for soybeans, near current 2023 fall bids. The models point to substantial cost increases in 2023, says Gary Schnitkey, University of Illinois Extension ag economist. 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. This is a record yield and up substantially from 2020's average yield of 177 bushels per acre. The total cost per bushel of soybeans is projected at $8.72 for non-herbicide-tolerant beans at 56 bpa, according to the report.". The most profitable farm made $275 per acre while the least profitable lost $222 per acre. 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. Return on equity - net farm income minus value of operator and family labor, divided by net worth. A great alternative browser focused on user privacy. Sell plant seeds online. There is a lot of corn grown each year in the United States. <>>> _. The 2023 crop budgets are based on projected input cost levels, trendline corn and soybean yields and per-bushel prices of $5.30 for corn and $12.75 for soybeans. Across FBFM farms , farmer returns for corn averaged $8 per acre in 2018, with an average yield of 237 bushels per acre, and an average price of $3.60 per bushel . hbbd```b``"_HRD2I V&%T$/"9;@h$-"%H`f3N$_ j6@ d-z The average yield on an acre of popcorn ranges from 1,000 to 4,000 pounds of grain. Starting in 2021, the amount of nitrogen applied to corn production follows the recommendations from the ISU Corn Nitrogen Rate Calculator. Learn more. Interest is not included. While fertilizer prices have declined recently (see farmdoc daily, July 19, 2022), fertilizer prices are still much higher than last year. This measures the total production per farm. An analysis of state average corn yield history data provided by the USDA NASS indicates there are two causes of corn yield (in bushel per acre) variations at the regional level in the United States. NREL . 10 Most Profitable Specialty Crops to Grow Lavender. The projected corn-to-nitrogen price ratio used in the calculator amounted to 12.35. I would think that corn seed with CRW resistance would be higher in cost. 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. stream Contract grazing: A flat rate is paid per animal per month or per day by the livestock owner to the landowner. 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. Schnitkey, G. and K. Swanson. For 2023, much higher prices than average historical prices are needed to maintain some profitability. This typically happens in agriculture after a period of higher returns, we return to those lower returns, he says. Corn seed costs have increased 74% since the inception of the contest in 1987. But farmers also must maintain a production level that will result in profitable returns. Start blogging about your newest farming adventures. Gourmet mushrooms. When using the ISU cost of production estimates for 2021, keep several things in mind. According to Iowa State it takes about 1.25 gallons of diesel fuel to cut, rake and bale per acre. For related content and insights from industry experts, sign up for Successful Farming newsletters. In 2019/2020, Iowa corn growers grew an average of 178 bushels per acre. The graph below shows the US national average winter wheat yield in bushels per acre as reported by the USDA NASS . It is important to mention that although there are clear profits and losses, this does not sum up the complete profitability of a corn or soybean farmer. 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. In a year with low-corn-price predictions, every input must be reviewed to lower the cost of production. 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. The budgets are for four regions of Illinois (northern Illinois, central Illinois with high-productivity farmland, central Illinois with low-productivity farmland and southern Illinois). The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. of Science and Technology In an average year, Iowa produces more corn than most countries. Does not include principal borrowed or repaid, sales and purchases of capital assets, or nonfarm income and expenses. . For central Illinois high-productivity farmland, we are projecting an average return of $25 per acre for a corn-soybean rotation, Schnitkey says. Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. Corn: 13 cents per bushel in charge; then 4 cents per month prorated daily through August 31, 2023. Your email address will not be published. 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. it gets. To see all exchange delays and terms of use, please see https://www.barchart.com/solutions/terms. The total cost per bushel of soybeans is projected at $9.04 for non-herbicide-tolerant beans at 56 bushels per acre, according to the report. Agricultural price and income policy has been in place in different forms since World War I. do champions league winners get automatic qualification. 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. 1. Corn production would not be profitable in a continuous corn scenario if the price per bushel is $3.65. Depreciation is estimated at 10% of current value of the machinery. Use the 68-95-99.7 Rule (Empirical Rule) to answer the following questions. Corn is seen as a staple in the average family diet. Corn seed costs are expected to increase by 2% to $262 per bag. Total non-land costs for corn are estimated at $420 an acre and for soybeans at $266 an acre. Create fishing lakes or ponds for local fisherman or groups to rent. Those break-even price are above average prices received from 2014 to 2019: $3.66 per bushel for corn and $9.69 for soybeans. As shown in Table 2, most costs are projected to increase. Cost of production estimates for herbicide tolerant soybeans amount to $9.16, $8.94 and $8.74 per bushel for target yields of 50, 56, and 62 bushels per acre, respectively. This is $20 per acre lower than 2019. By accessing or using the Service you agree to be bound by these Terms. The rest of expected federal payments will be from CFAP, at about $30 an acre. To maximize profit, research shows Minnesota growers need a final stand of 32,000 to 34,000 plants per acre (Figure 1), although this varies with the cost of seed and corn price. "Cost of production estimates, per bushel, for herbicide-tolerant soybeans are $8.89, $8.72 and $8.57 assuming 50, 56, and 62 bushels per acre, respectively. In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. #18. The average corn profit since 1968 has been $0.05/bu, however in the last 5 years the cost to price margin was, on average, -$0.05/bu, if this average is extended to 10 years the average corn profit per bushel is $0.49/bu. We use a great deal of rope for odd jobs around the farm and at various community events. where did the 198,870 kWh per acre in Iowa come from? hb```b``fb`e`0ed@ Aa,Y 4>hNem}AS1d03r3yU b<4,dPC765b/N`` r::y;L}/X8Q!7j0c|xq)f$=x>dC1^ ]< LK@&q;k !|HJ``*5 |pU_D u Z!, Reference yields for corn and soybean budgets in the annual Iowa State University Extension and Outreach report reflect 30-year trend yields. More details on 2023 budgets are available in the management section of farmdoc through two documents: Schnitkey, G. and K. Swanson. However, futures prices are currently reflecting a market reaction to unexpected USDA production and stocks figures, and they could retrench fast once the market reassess the real impact of the new information. In 2023, total costs are projected at $1,161 per acre, up from the $1,054 level in. There has been an upward trend in the