This early in the season, Johnsons estimates are estimates, of course. For northern Illinois, the break-even corn price is $5.34 per bushel on cash rented land. 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. How Much Profit Per Acre of Corn Can a Farmer Make Yearly? The Estimated Costs of Crop Production use average corn seed prices paid by farmers in Fall 2020 around the state in both corn budgets, so our budgets do not disaggregate seed traits. In fact, there was a farm in Dubuque County that sold on June 1st for $30,600/acre! The state average is 1,000 to 1,200 dozen per acre or 200 to 240 crates . For a detailed statement, please see the University of Illinois Copyright Information and Policies here. Corn stocks down, soybean stocks down from year earlier These farm record data are presented in the accompanying "pdf" file that you can access by clicking here or on the icon above. Area harvested for grain is estimated Corn for silage production is estimated at 5.33 million tons, down 33% from 2019. 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. Average four-crop gross income per acre = approximately $790 per acre . 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. 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. Projected prices are $5.30 per bushel for corn and $12.70 for soybeans, near current 2023 fall bids. This . Working capital - current assets minus current liabilities. What is the average bushel of corn per acre? 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. Contract grazing: A flat rate is paid per animal per month or per day by the livestock owner to the landowner. 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. The average cost per acre in the livestock corn division is $206 (minimum = $186 in 1993; maximum = $235 in 1987). The Ukraine-Russia war has further clouded the outlook and worsened supply chain issues. It is difficult to predict corn-production economics. This might not be much, but with crop insurance and if you out in all the required inputs, you might break even from your corn farm. The rest of expected federal payments will be from CFAP, at about $30 an acre. The average price per acre for farmland in Iowa is currently $13,859.79/acre. Sell local honey at farmers markets. Knowing costs is key, as it is to understand the assumptions behind the budgets used in the calculations. Contact a specialist. Variable costs represent just over half of the costs of production, and nitrogen and seed costs account for about 43% of the variable costs. Since 2013, soybeans have been more profitable than corn, albeit at much lower levels. A projected $5.30 corn price for 2023 compares to a $3.66 price from 2014 to 2019. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. With an average direct cost of $751 per acre of corn and $900 in sales, the farmer has about $149 left. Unless farm operators use futures or options to create a floor for their crop prices, current future prices might foster a false sense of security. 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 <. The Guide also reports expected variable costs of $403 per acre. Your email address will not be published. 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. Still, you can apply up through June 30 at your bank or Farm Credit System lender that is participating in the program. Table 2 shows actual results for northern Illinois for 2021, along with projections for 2022 and 2023. Soybeans could trigger a $10-per-acre PLC or ARC-CO payment and CFAP would bring another $12 an acre. 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? At 160 bushels per acre, it is $4.03. This compares to U.S. corn yields of 172 bushels per acre in 2020, 167.4 bushels per acre in 2019, 176.4 bushels per acre in 2018 and the current record U.S. average . The Census Data Query Tool (CDQT) is a web based tool that is available to access and download table level data from the Census of Agriculture Volume 1 publication. Non-land costs are based on historical expenses on Illinois farms, updated based on current and expected input price levels. At the same time, farm income was forecast to increase nationwide in 2020 (see Farm Income and Wealth Statistics for details). Keep in mind that for the buyer, harvest costs for silage would be different than harvest costs for grain. The deadline is August 28. It will take nearly all of that to reach Johnson's projected net return to the farmer of $86.60 an acre for corn. Farm Business Association data on farm family living expenses. Non-land costs are projected to be $860 in 2023, up from $758 in 2022. In recent years, corn profits have been significantly more volatile than in years past, thus affecting the income of farmers per acre. The top portion of each table shows income. 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). Iowa ranked first in corn production in 2020 despite both drought and damaging derecho occurring during the season. The full report is available online through the Ag Decision Maker website. 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. Livestock returns per $100 feed fed - value of livestock production minus livestock purchases, divided by value of feed fed, multiplied by 100. Overall, costs have increased dramatically since 2020, from $577 to $860, an increase of $283 per acre, or a 49% increase. For 2019, a 63 bushel per acre yield and $9.00 per bushel price are used in projections, giving $567 of crop revenue. From 2000 to 2012, farmer returns averaged $148 per acre for corn and $95 per acre for soybeans. endobj previous year's 2.58 billion bushels. <>/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>> Cost of production in 2018 is predicted to be $645 per acre . Current futures prices seem to indicate that corn and soybean prices might average $3.90 and $9.50 per bushel in 2020-21, respectively. Risks will exist throughout the autumn as many decisions concerning 2023 production are made, and input prices are locked in. This material may not be published, broadcast, rewritten,or redistributed. farmdoc daily (12):106, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, July 19, 2022. This typically happens in agriculture after a period of higher returns, we return to those lower returns, he says. The latest issue of the ISU Extension and Outreach, Estimated Costs of Crop Production, reports average cost estimates for Iowa farms in 2021, and provides guidelines to help farmers calculate their own costs of production. Yields are set at trend levels for 2023, with trends established through historical yields. 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. At the landowner webinar, Kristine Tidgren, director of ISUs Center for Agricultural Law and Taxation, covered the highlights of the nearly $700 billion program. For soybeans, he estimates smaller federal payments of $32 an acre. The silage . For soybeans, the yield is pegged at 55 bushels an acre with an average selling price of $8.20 per bushel. 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 increase between the five and ten-year averages is because the very high prices of the drought years (2011-2013) are added in. 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. Have a specific question for one of our subject experts? of Science and Technology 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. The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. 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. Eligibility is determined in part by last years payroll and self-employment income. 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. In recent years, corn profits have been significantly more volatile than years past. Projections are for a return to much lower profits in 2023, continuing a pattern of rising and falling farm incomes. 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). How about the amortized cost of the farm equipment? County yields ranged from 37.9 bushels per acre in Decatur County to 69.1 bushels per acre in Scott County. Sign-up for either ARC or PLC for 2020 is still underway until June 30 but most farmers have already opted for PLC for corn base acres and likely ARC-CO on soybeans. 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. Take, for example, the Central CRD in Illinois. 5598 0 obj <>stream 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, a grower generally has more control over the cost of production than price. The average yield on an acre of popcorn ranges from 1,000 to 4,000 pounds of grain. Arable Farmer. 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. 2 0 obj Those break-even prices are above average prices received from 2014 to 2019 ($3.66 per bushel for corn and $9.69 for soybeans). The Quick Stats Database is the most comprehensive tool for accessing agricultural data published by NASS. Actual costs can be entered in the column for Your Estimates, or by using the electronic spreadsheet Decision Tools on the Ag Decision Maker website. Table 2 shows actual results for northern Illinois for 2021, along with projections for 2022 and 2023. Woody ornamentals. ISU used a a corn yield target of 200 bu./acre with an average price of $3.10 per bushel. Only farms with sales of $100,000 or more were counted in making the weighting. 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. Non-land costs for 2019 are projected at $369 per acre, an increase of $15 per acre over 2018 costs. Machinery costs are projected to decline by 6% primarily due to lower diesel costs: $2.02 in 2021 versus $2.53 in 2020. <>>> 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. Total non-land costs for corn are estimated at $420 an acre and for soybeans at $266 an 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. All these serve to influence what a farmer can make from an acre of corn. A safety net under revenue will be established when projected prices for crop insurance are determined in February 2023. Garlic. All rights reserved. 0 The 2023 farmer return is projected to be close to the average from 2013 to 2019 when the return averaged $29 per acre. More than 200 counties across the Corn Belt had county average rental rates above $200 per acre, with . An industrial hose reel cart works great for read more. 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. The most recent release, September 2019, showed county-level rental rates for non-irrigated cropland ranging from less than $10 per acre in several Western states to more than $250 per acre across portions of the Corn Belt in Illinois and Iowa. 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. For central Illinois high-productivity farmland, we are projecting an average return of $25 per acre for a corn-soybean rotation, Schnitkey says. Return on equity - net farm income minus value of operator and family labor, divided by net worth. Over time, corn yields have increased an average of 2.0 bushels per acre, while soybean yields have increased by .5 bushels per acre. Another grower and customer favorite is Elephant garlic, whose large, mild cloves bring $6-$8 per pound. For soybeans, with $621 in income, total direct costs are $485. Offer indoor or outdoor storage. Ways to Make Money Off Your Land Almost Immediately Rent plots to groups looking to build a community garden. Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. 2021 farmer, landlord rent discussions to get interesting. Using the average miles per gallon of a US automobile, this equates to 9,691 miles driven per acre of corn per year. For corn, Johnson estimates a PLC payment of $65 an acre. Overall, costs have increased dramatically since 2020, from $577 to $860, an increase of $283 per acre, or a 49% increase. 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. Price. Lavender farming can produce above-average profits for small growers, as it is such a versatile crop. He expects another CFAP-like payment could be comingbut will likely use the 2020 planted acres. _. The total cost per bushel of soybeans is projected at $8.72 for non-herbicide-tolerant beans at 56 bpa, according to the report.". 518 Farm House Lane document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 1995-document.write(new Date().getFullYear()) do champions league winners get automatic qualification. 3: How much better is this field than the county average? Corn seed costs are expected to increase by 2% to $262 per bag. As shown in Table 2, most costs are projected to increase. At 180 bushels per acre, it is $3.58 per bushel. Additionally, there seems to be reactionary trend for costs to prices the year before. The wage rate used for operator labor was $2,500 per month. The return on soybeans fares better at $150 per acre because fertilizer, seed and drying costs for soybeans are projected to be $226 per acre cheaper than for corn. © 1995 - 2023 Farm Journal, Inc. All RightsReserved. To answer you have to make a lot of assumptions. 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. For all regions of Illinois, the relatively high returns experienced in recent years are projected to end in 2023. The graph below shows the US national average winter wheat yield in bushels per acre as reported by the USDA NASS . Similarly, a projected 2014 soybean price of $12.70 compares to an average price of $9.69 from 2014 to 2019. Home Business ideas Agriculture Industry Crop Cultivation. Those differences are not likely to change normal rotational decisions. The next portion of each table shows expenses on a per acre basis. 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. 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. Will Bird Flu Become a Recurring Issue Each Year. As farmers and landowners negotiate rents for next year, Johnson said he believes 2021 could be even more challenging. The first round of 2023 Illinois Crop Budgets released by the University of Illinois show a clear trend of higher costs and lower returns. 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. 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. All https://www.barchart.com/solutions/ is provided by Barchart Solutions. Corn yields were maximized near a final stand of 33,000 plants per acre and were not reduced as plant population increased to 44,000 plants per acre. Gourmet mushrooms. Alejandro Plastina, extension economist, 515-294-6160, plastina@iastate.edu, Department of Economics The United States produced 14.2 billion bushels of corn in 2019. "Nitrogen Fertilizer Outlook for 2023 Decisions." For related content and insights from industry experts, sign up for Successful Farming newsletters. The most profitable farm made $275 per acre while the least profitable lost $222 per acre from planted corn. However, higher expected corn yields over a 30-year trend for 2021 suggest that on a per bushel basis, costs would increase by 1.0% 2.6% to remain below their 2019 marks (Figure 1). 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. 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. Projected prices are $5.30 per bushel for corn and $12.70 for soybeans, near current 2023 fall bids. Data for ending assets and liabilities represent those of the operator only, and do not include the value of rented land. Some speculate this could become a trend based on a hypothesis in how the disease is transmitted. According to some studies, average yield of garlic per acre is between 10,000 and 12,000 pounds and yearly profit per acre is around $80,000 what makes this crop one of the best cash crops with the highest profit per acre. We are projecting higher fertilizer costs in 2023. A great alternative browser focused on user privacy. Acrevalue Inc. 50w fiber laser marking machine price. %PDF-1.5 The cost estimates are representative of average costs for farms in Iowa. 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. 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%. 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. All Rights Reserved. It will be on corn for the 2020 crop but not received until October 2021.. Copyright 1995-document.write(new Date().getFullYear()) All records were kept on the accrual, or inventory, basis. The most profitable farm made $275 per acre while the least profitable lost $222 per acre. 4 0 obj In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. 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. Quick Stats Lite provides a more structured approach to get commonly requested statistics from our online database. Sign-up for the CFAP program, through your local Farm Service Agency, is still underway. Learn more. Annual production costs for established alfalfa or alfalfa-grass hay as well as a budget for maintaining grass pastures are included. 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. This is $20 per acre lower than 2019. Projected returns range from $13.50 per acre for dryland corn to $194.55 per acre for irrigated corn. For 2020, the state of Illinois had an average soybean yield of 60 bushels per acre and an average corn yield of 192 bushels per acre. hb```b``fb`e`0ed@ Aa,Y 4>hNem}AS1d03r3yU b<4,dPC765b/N`` r::y;L}/X8Q!7j0c|xq)f$=x>dC1^ ]< LK@&q;k !|HJ``*5 |pU_D u Z!, 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. More details on 2023 budgets are available in the management section of farmdoc through two documents: Schnitkey, G. and K. Swanson. In the livestock corn division, the average cost per acre is $206 (minimum = $186 during 1993; maximum = $235 during 1987). 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. Create fishing lakes or ponds for local fisherman or groups to rent. Opportunities to price at those levels do not exist currently. Iowa farmers averaged 205 bushels per acre on corn for grain, the Jan. 12 report noted. Start blogging about your newest farming adventures. Ames, IA 50011-1054. Farmers need to manage nutrients and pesticides carefully to avoid adverse effects on the environment and to reduce the costs of purchased inputs. Because of industrial, seed, planting, and other kinds of modifications, what used to take days to plant can now be done in minutes. Dec 9, 2014. Given higher costs, break-even levels for northern Illinois for corn are $5.34 per bushel on cash rented land. Higher yield ratios indicate that corn is relatively more productive than soybeans, and vice versa. AgDay TV Markets Now: Randy Martinson of Martinson Ag Talks About How the February Crop Insurance Prices May Impact Planting Decisions. While fertilizer prices have declined recently (see farmdoc daily, July 19, 2022), fertilizer prices are still much higher than last year. That program is the CFAP (Coronavirus Food Assistance Program) for 2020, but the payment being made now reflects the 2019 production and unpriced bushels as of January 15. Lower commodity prices are possible from any number of causes. Answer (1 of 3): "Total Cost Analysis" for farmed products is tricky do you factor in the land costs (maybe $10,000 per acre for corn fields in production)? 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. . With an expected harvest price of $3.65, the anticipated market revenue is $657 per acre. Operating profit margin ratio - net farm income, plus interest expense, minus value of operator and family labor, divided by value of farm production. The United States grew 1,304,003,000 bushels (i.e. It is hard to trim costs so you can make a better profit if you dont know your inputs. State Corn Yield Per Acre: Causes of Variations. Winter Wheat Seedings up for 2023, NASS to publish milk production data in updated data dissemination format, USDA-NASS Crop Progress report delayed until Nov. 29, NASS reinstates Cost of Pollination survey, USDA NASS reschedules 2021 Conservation Practice Adoption Motivations data highlights release, Respond Now to the 2022 Census of Agriculture, 2017 Census of Agriculture Highlight Series Farms and Land in Farms, 2017 Census of Agriculture Highlight Series Economics, 2017 Census of Agriculture Highlight Series Demographics, NASS Climate Adaptation and Resilience Plan, Statement of Commitment to Scientific Integrity, USDA and NASS Civil Rights Policy Statement, Civil Rights Accountability Policy and Procedures, Contact information for NASS Civil Rights Office, International Conference on Agricultural Statistics, Agricultural Statistics: A Historical Timeline, As We Recall: The Growth of Agricultural Estimates, 1933-1961, Safeguarding America's Agricultural Statistics Report, Application Programming Interfaces (APIs), Seasonal Summary of Crop Progress and Condition/All Crops and All States, Economics, Statistics and Market Information System (ESMIS). The average corn yield per acre has doubled in the last forty years. The first release of the 2023 Illinois Crop Budgets is available on farmdoc. The most profitable farm made $275 per acre while the least profitable lost $222 per acre. You list seed costs as the same for corn after corn rotation as corn after soybeans. 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. The publication also includes budgets for alfalfa hay establishment with an oat companion crop and by direct seeding.