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. Reference yields for corn and soybean budgets in the annual Iowa State University Extension and Outreach report reflect 30-year trend yields. County yields ranged from 37.9 bushels per acre in Decatur County to 69.1 bushels per acre in Scott County. Click Image to Enlarge Changing Use Impacts Corn and Soybean Returns 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 $3 more per acre and if you get 2 tons/acre first cutting, .How Much Does it Cost to Ship Cattle? hbbd```b``"_HRD2I V&%T$/"9;@h$-"%H`f3N$_ j6@ d-z But farmers also must maintain a production level that will result in profitable returns. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. As shown in Table 2, most costs are projected to increase. gendergp subscription cost. 2023 Meredith Corporation. The technology trend causes an upward slope of yield over time. Second, farmers paying land rents higher than the ones projected in the report might face higher costs of production. 1). do champions league winners get automatic qualification. Livestock returns per $100 feed fed - value of livestock production minus livestock purchases, divided by value of feed fed, multiplied by 100. The highest returns are in central Illinois with high-productivity farmland, with farmer returns of $8 for corn and $43 per acre for soybeans. <>>> 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. Total non-land costs for corn are estimated at $420 an acre and for soybeans at $266 an acre. 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. Projected returns range from $13.50 per acre for dryland corn to $194.55 per acre for irrigated corn. 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 <. In 2023, total costs are projected at $1,161 per acre, up from the $1,054 level in. Sell plant seeds online. In a year with low-corn-price predictions, every input must be reviewed to lower the cost of production. Eligibility is determined in part by last years payroll and self-employment income. 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. The Guide also reports expected variable costs of $403 per acre. 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. Woody ornamentals. Because of industrial, seed, planting, and other kinds of modifications, what used to take days to plant can now be done in minutes. Costs are projected to increase in 2023 from 2022 levels. The average cost per acre has been $238 (minimum = $215 during 1995; maximum = $260 during 1992). In the livestock corn division, the average cost per acre is $206 (minimum = $186 during 1993; maximum = $235 during 1987). Higher yield ratios indicate that corn is relatively more productive than soybeans, and vice versa. Take, for example, the Central CRD in Illinois. Corn stocks down, soybean stocks down from year earlier And those optimum populations increased yield of marketable ears by an average of 0.53 tons per acre. It allows you to customize your query by commodity, location, or time period. The average flat rate in 2020 for harvesting wheat was $24.96 per acre, a decrease of $0.26 from $25.22 per acre in 2018. If YES, here is an analysis of the income & profit margin corn farmers make per acre. 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. I would think that corn seed with CRW resistance would be higher in cost. 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). Still, you can apply up through June 30 at your bank or Farm Credit System lender that is participating in the program. In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. If theyre paying average cash rent, theyre not making any money, Johnson said of his outlook for soybeans. The projected season-average farm price is unchanged at $4.00 per bushel. 5598 0 obj <>stream 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. The projected corn-to-nitrogen price ratio used in the calculator amounted to 12.35. "Nitrogen Fertilizer Outlook for 2023 Decisions." 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. That's anywhere from $2,500 to more than $10,000 per acre gross profit! 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. The Ukraine-Russia war has further clouded the outlook and worsened supply chain issues. While fertilizer prices have declined recently (see farmdoc daily, July 19, 2022), fertilizer prices are still much higher than last year. Depreciation is estimated at 10% of current value of the machinery. Also included in the formula were revenue protection (RP) insurance at the 80% level . For corn, Johnson estimates a PLC payment of $65 an acre. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. 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. With an average direct cost of $751 per acre of corn and $900 in sales, the farmer has about $149 left. 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. 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. In 2023, total costs are projected at $1,161 per acre, up from the $1,054 level in 2022, Schnitkey says. 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. Interest is not included. Over time, corn yields have increased an average of 2.0 bushels per acre, while soybean yields have increased by .5 bushels per acre. Return on assets - net farm income, plus interest expense, minus value of operator and family labor, divided by total farm assets owned. Iowa State University Extension and Outreach, Managing farm costs key to profitability in 2021. Working capital - current assets minus current liabilities. 2 0 obj where did the 198,870 kWh per acre in Iowa come from? Keep in mind that for the buyer, harvest costs for silage would be different than harvest costs for grain. 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. The rest of expected federal payments will be from CFAP, at about $30 an acre. U.S. farmland values remained high in 2020, averaging $3,160 per acre, a small decrease of 0.8 percent compared with 2019. All rights reserved. Iowa has led the Nation in corn production for the last 27 consecutive years and 42 of the last 43 years. 518 Farm House Lane The graph below shows the US national average winter wheat yield in bushels per acre as reported by the USDA NASS . The governmental agency estimated corn production at 13.77 billion bushels vs. the avg. Another grower and customer favorite is Elephant garlic, whose large, mild cloves bring $6-$8 per pound. Required fields are marked *. Additionally, what used to take days to plant can now be done in minutes. Agricultural price and income policy has been in place in different forms since World War I. Friday, an Iowa State University (ISU) farm management specialist told landowners that all of any profits farmers earn this year on corn will be due to those payments and that even with federal help, soybeans will lose an average of $15 an acre. The most profitable farm made $275 per acre while the least profitable lost $222 per acre. Profits from soybean production would exceed $110 per acre. Many farmers purchased fertilizer for 2022 before much of the price increase in fall and early winter of 2021. Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021-22, respectively. Price = $5.00/bushel 2. Yields are set at trend levels for 2023, with trends established through historical yields. Obviously, risks of lower returns exist. 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. 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. for the fresh market and 4 to 6 tons per acre for processing. Overall, with all adjustments considered, cash and economic costs per production unit remained generally steady from the 2020 budgets to the new budgets for 2021. For northern Illinois, the break-even corn price is $5.34 per bushel on cash rented land. First, fertilizer and lime costs include volume and early purchase discounts. This is likely a phenomenon caused by price expectations. Over time, corn yields have increased an average of 2.0 bushels per acre, while soybean yields have increased by .5 bushels per acre. In recent years, corn profits have been significantly more volatile than in years past, thus affecting the income of farmers per acre. A decline in commodity price likely would not be associated with similar decreases in cost levels, reducing already narrow margins. trade estimate of 13.68 billion and its previous estimate of 13.7 billion. hb```b``fb`e`0ed@ Aa,Y 4>hNem}AS1d03r3yU b<4,dPC765b/N`` r::y;L}/X8Q!7j0c|xq)f$=x>dC1^ ]< LK@&q;k !|HJ``*5 |pU_D u Z!, Decision Tools on the Ag Decision Maker website, ISU cost of production estimates for 2021, https://www.youtube.com/watch?v=xuxGMkKuzeE. Corn and soybeans futures prices have recently rallied to their highest levels in years, providing hope for a market-driven profitable 2021 crop year. Area harvested for grain is estimated Corn for silage production is estimated at 5.33 million tons, down 33% from 2019. The United States produced 14.2 billion bushels of corn in 2019. As of Friday, $130 billion hadnt been spent, Tidgren said. 2021 farmer, landlord rent discussions to get interesting. Interest rates, energy prices, and wage rates continue to increase, and supply issues that began in Covid have not been resolved. We use a great deal of rope for odd jobs around the farm and at various community events. The average yield in their database is 60 bushels (beans) and 204 bushels (corn). 710,250 miles. You list seed costs as the same for corn after corn rotation as corn after soybeans. Using the average miles per gallon of a US automobile, this equates to 9,691 miles driven per acre of corn per year.