Fuel and insecticide costs, interest expenses on pre-harvest input financing, and crop insurance premiums are projected lower in 2021. 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. ", 2023 Crop Budgets: Higher Costs and Lower Returns, Revenue and Costs for Illinois Grain Crops, Revenue and Costs for Illinois Grain Crops, Actual for 2015 through 2021, Projected 2022, Nitrogen Fertilizer Outlook for 2023 Decisions, Corn and Soybean Prevent Plant and the Dakotas, Department of Agricultural and Consumer Economics, Department of Agricultural, Environmental and Development Economics. 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. 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 . 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. 3 0 obj Davis Michaelsen and Editor Brian Grete discuss this week's market action From conventional horizontal tillage to strip-till and no-till, the key is applying a production system that can overcome each fields weakness. Required fields are marked *. Total costs of corn and soybean production per acre are expected to increase, respectively, by 2.1% 3.4% and 2.6% in 2021. Client Corner: Where can I find average prices for corn and soybeans? Iowa State University The break-even soybean price is $12.54. Total costs are projected at $785 per acre, with $476 per acre in non-land costs and $309 per acre in cash rent. At 160 bushels per acre, it is $4.03. Knowing costs is key, as it is to understand the assumptions behind the budgets used in the calculations. 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. The wage rate used for operator labor was $2,500 per month. Woody ornamentals. In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. <> For soybeans, with $621 in income, total direct costs are $485. However, vegetable processors choose the hybrid, provide seed of that hybrid, and set the population size. Management return - accrual net farm income less 4% interest on value of equity (net worth), and wages for operator and family labor. - One instrument that can be used is The average corn yield per acre has _____ . As of Friday, $130 billion hadnt been spent, Tidgren said. Those yields are the same as Iowas 2019 average yields and prices are national average cash prices released by USDA in the June 11 supply and demand report. Authors Television Broadcast average profit per acre of corn in iowa Your email address will not be published. Producers must have a strong grasp of their own production costs, and the ISU Extension report provides a step-by-step guide to help them estimate break-even costs, and serves to benchmark operations and trigger relevant questions on how to better manage enterprise costs. Ways to Make Money Off Your Land Almost Immediately Rent plots to groups looking to build a community garden. . An agricultural economics and business website. To continue using this site and its features, you will need to use a newer browser. Sign-up for the CFAP program, through your local Farm Service Agency, is still underway. Is this correct? Your email address will not be published. When using the ISU cost of production estimates for 2021, keep several things in mind. 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. The average yield in their database is 60 bushels (beans) and 204 bushels (corn). The average yield of corn (bushels per acre) for Iowa counties during 2022 follows a bell-shaped (symmetric and unimodal) distribution with a mean of 180 bushels per acre and a standard deviation of 24 bushels per acre. x=8z98[; @&bg6;bfV_de{HEv:r'@;EbIXoo.(~? "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. The biggest is that corn and soybean prices decline, and costs do not-- an event that could happen.. bushel higher per acre when comparing to the five-year average from 2016 to 2020. The key points to remember when growing popcorn is to make sure it doesn't cross pollinate with other corn you may be growing. _. In 2023, total costs are projected at $1,161 per acre, up from the $1,054 level in 2022, Schnitkey says. If theyre paying average cash rent, theyre not making any money, Johnson said of his outlook for soybeans. With the many types of flex rents, the landowner usually takes a lower fixed payment than with cash rents, in exchange for sharing a percentage of the farms positive returns. Corn seed costs have increased 74% since the inception of the contest in 1987. For northern Illinois, the break-even corn price is $5.34 per bushel on cash rented land. 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. 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. Yield multiplied by price equals the total production return per acre. Home Business ideas Agriculture Industry Crop Cultivation. corn takes the worst figure in the study to the third best at $144 per acre profit . of Science and Technology Lavender farming can produce above-average profits for small growers, as it is such a versatile crop. 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. Website: https://ask.usda.gov/s/, June Turner, Director Email: / Phone: (202) 720-8257, Find contact information for Regional and State Field Offices. 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. Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. 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. Corn costs were much smoother than prices. The U.S. Department of Agriculture's National Agricultural Statistics Service reported on Friday that Iowa averaged 200.0 bushels per acre for corn and 58.5 bushels per acre . In 2023, farmer returns are projected at $25 per acre, well below levels for 2020 to 2022, when farmer returns averaged $232 per acre. Schnitkey, G. and K. Swanson. At 180 bushels per acre, it is $3.58 per bushel. Land costs account for 44% of total costs of soybean production, and variable costs account for an additional 42%. Central Illinois with high-productivity farmland, Central Illinois with low-productivity farmland, and. Working capital - current assets minus current liabilities. With an expected harvest price of $3.65, the anticipated market revenue is $657 per acre. A continuous corn system would not be able to cover all costs even with high yields, and corn production following soybeans would generate $30 to $40 per acre in profits. Corn stocks down, soybean stocks down from year earlier 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 Seed and fertilizers amount to 44% of variable costs. 4 0 obj 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. These variations impact US state corn production.. Each is important for creating an accurate corn yield forecast. 1. This measures the total production per farm. To answer you have to make a lot of assumptions. Iowa's corn for grain yield is estimated at 178 bushels per acre. The hemp -derived CBD market is projected to top $23 billion by 2023, according to the Hemp Cultivation Landscape study conducted by the Brightfield Group. 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. Until that point, the risks of low returns from price declines will be large. We're still protecting positive returns for 2023 but there are risks. How many farmers know what their inputs are, let alone their costs per acre or per bushel? 0 trade estimate of 13.68 billion and its previous estimate of 13.7 billion. Iowa farmers averaged 205 bushels per acre on corn for grain, the Jan. 12 report noted. Table 2 shows actual results for northern Illinois for 2021, along with projections for 2022 and 2023. In an average year, Iowa produces more corn than most countries. (Source: USDA, Jan. 2021) State Corn Yield Per Acre: Causes of Variations. 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. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. In a year with low-corn-price predictions, every input must be reviewed to lower the cost of production. Inventory value gain or loss - change in value of crops or livestock sold due to differences in opening inventory price and final sale price. The first release of the 2023 Illinois Crop Budgets is available on farmdoc. #18. If you're making 1000/acre +, you need to keep very quiet about it, otherwise peeps will jump on the bandwagon and wreck the job for everyone, as has happened with organic veg/free range chickens etc. The average corn yield per acre has _____ during the last forty years. Variable costs: Fuel, fertilizer, seed, irrigat. Depreciation is estimated at 10% of current value of the machinery. Since 2013, soybeans have been more profitable than corn, albeit at much lower levels. All these serve to influence what a farmer can make from an acre of corn. Japanese maples. Profitability risks will be mitigated over time as input prices are locked in and as projected prices for crop insurance are set in February 2023. In the cash corn division, the average cost per bushel has ranged from $1.25 to $1.95, and in the livestock corn division, the average cost per bushel has ranged from $1.13 to $1.81. In 2019/2020, Iowa corn growers grew an average of 178 bushels per acre. Landscaping trees and shrubs. The average of all farms in each table represents a weighted average of the values for each size group listed. There is substantial uncertainty regarding crop prices in the coming season. For 2023, much higher prices than average historical prices are needed to maintain some profitability. The graph below shows the US national average winter wheat yield in bushels per acre as reported by the USDA NASS . 518 Farm House Lane Return on assets - net farm income, plus interest expense, minus value of operator and family labor, divided by total farm assets owned. For 2019, a 63 bushel per acre yield and $9.00 per bushel price are used in projections, giving $567 of crop revenue. By accessing or using the Service you agree to be bound by these Terms. Average costs per bushel have been $1.26 to $1.74 in the cash grain division, and $1.13 to $1.81 in the dairy and livestock division. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. holding off on buying and working with what I have. If water requirements are met with a good irrigation system and other cultural practices optimized, sweet corn yields can be up to 7 to 8 tons per acre or 2,000 dozen. Last Tuesday, the Food and Agricultural Policy Research Institute released an estimate of a record $32.8 billion in direct payments that will go to farmers this year. For all regions of Illinois, the relatively high returns experienced in recent years are projected to end in 2023. corn takes the worst figure in the study to the third best at $144 per acre profit . Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. The publication also includes budgets for alfalfa hay establishment with an oat companion crop and by direct seeding. <> 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. For central Illinois high-productivity farmland, we are projecting an average return of $25 per acre for a corn-soybean rotation, Schnitkey says. Additionally, what used to take days to plant can now be done in minutes. Brazil became the second country in the world after Argentina to approve planting of GMO wheat, following a decision by the nations biosecurity agency CTNbio. Total costs equal non-land costs and land costs. 1 0 obj This can be viewed in Figure 2. The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. While commodity prices are projected lower, those prices still are not low by historical standards. Like non-land costs, can rents have increased since 2020, increasing from $256 per acre up to $301 per acre, an increase of $45 per acre, or 18%. 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