This can be viewed in Figure 2. 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. Central Illinois with high-productivity farmland, Central Illinois with low-productivity farmland, and. At 180 bushels per acre it is $3.58 per bushel. The 2020-2021 national average corn price, which will be finalized on Sept. 30, is now estimated at $4.40 per bushel. In recent years, corn profits have been significantly more volatile than in years past, thus affecting the income of farmers per acre. 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. <> 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. The first release of the 2023 Illinois Crop Budgets is available on farmdoc. Arable Farmer. Written byAlejandro Plastina,Extension Economist,plastina@iastate.edu. 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). Based on these numbers, corn is estimated to return about $155 per acre and beans will return about $70. Non-land costs for 2019 are projected at $369 per acre, an increase of $15 per acre over 2018 costs. <> Current futures prices seem to indicate that corn and soybean prices might average $3.90 and $9.50 per bushel in 2020-21, respectively. 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. If YES, here is an analysis of the income & profit margin corn farmers make 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. 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 The biggest is that corn and soybean prices decline, and costs do not-- an event that could happen.. The highest returns are in central Illinois with high-productivity farmland, with farmer returns of $8 for corn and $43 per acre for soybeans. 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. ", 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. equals the gross return per acre. It will take nearly all of that to reach Johnsons projected net return to the farmer of $86.60 an acre for corn. Phosphorus and potassium were charged, respectively, at $.39 and $.30 per pound. 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. As shown in Table 2, most costs are projected to increase. Corn: 13 cents per bushel in charge; then 4 cents per month prorated daily through August 31, 2023. Corn and soybeans futures prices have recently rallied to their highest levels in years, providing hope for a market-driven profitable 2021 crop year. History suggests that low prices would not lead quickly to lower costs, as costs typically exhibit lags in adjustments. However, vegetable processors choose the hybrid, provide seed of that hybrid, and set the population size. In 2019/2020, Iowa corn growers grew an average of 178 bushels per acre. The Guide also reports expected variable costs of $403 per acre. The lowest returns are projected for southern Illinois, with farmer returns of -$63 per acre for corn and -$61 per acre for soybean. Total costs of corn and soybean production per acre are expected to increase, respectively, by 2.1% 3.4% and 2.6% in 2021. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 1995-document.write(new Date().getFullYear()) Depreciation is estimated at 10% of current value of the machinery. 3: How much better is this field than the county average? For related content and insights from industry experts, sign up for Successful Farming newsletters. Willows . Farm Business Association data on farm family living expenses. Opportunities to price at those levels do not exist currently. Projected prices are $5.30 per bushel for corn and $12.70 for soybeans, near current 2023 fall bids. 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. Projections are for a return to much lower profits in 2023, continuing a pattern of rising and falling farm incomes. Sac county had the largest year-over-year increase of 5.8 bushels per acre while Plymouth County saw the largest decrease of . Eligibility is determined in part by last years payroll and self-employment income. Soybeans could trigger a $10-per-acre PLC or ARC-CO payment and CFAP would bring another $12 an acre. 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. For corn, Johnson estimates a PLC payment of $65 an acre. Return on equity - net farm income minus value of operator and family labor, divided by net worth. ~ 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 Values of $187, $222, and $256 per acre rent charges for the low, medium, and high quality land were assumed. If theyre paying average cash rent, theyre not making any money, Johnson said of his outlook for soybeans. Over time, corn yields have increased an average of 2.0 bushels per acre, while soybean yields have increased by .5 bushels per acre. The average price per acre for farmland in Iowa is currently $13,859.79/acre. The 2022 fertilizer costs will likely top the average fertilizer expenses of $194 . endobj Corn production would not be profitable in a continuous corn scenario if the price per bushel is $3.65. 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. Those break-even price are above average prices received from 2014 to 2019: $3.66 per bushel for corn and $9.69 for soybeans. Management return - accrual net farm income less 4% interest on value of equity (net worth), and wages for operator and family labor. Second, farmers paying land rents higher than the ones projected in the report might face higher costs of production. The models point to substantial cost increases in 2023, says Gary Schnitkey, University of Illinois Extension ag economist. The full report is available online through the Ag Decision Maker website. The projected season-average farm price is unchanged at $4.00 per bushel. 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. These returns are for a typical 50% corn and 50% soybean rotation in central Illinois. The 1964 Iowa corn yield test 0 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. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. Lower commodity prices are possible from any number of causes. State Averages Total costs to produce corn for all combined areas of the state were $868 per acre. Required fields are marked *. . 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. In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. At 180 bushels per acre, it is $3.58 per bushel. USDA projections for 2020-2021, published in October 2019, put the average U.S. farm prices for corn and soybean at $3.40 and $8.85. 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. The graph below shows the US national average winter wheat yield in bushels per acre as reported by the USDA NASS . soybeans per acre, farms averaged $673 total revenue per acre and averaged $664 total cost per acre. The lower projected profits in 2023 result from much higher costs and projected lower commodity prices than 2021 and 2022. Email: askusda@usda.gov (Source: USDA, Jan. 2021) where did the 198,870 kWh per acre in Iowa come from? The wage rate used for operator labor was $2,500 per month. Sell plant seeds online. A bit of luck here. But despite this volatility, corn farmers are still making some good profit from their corn farms, depending on the yield of that year. Landscaping trees and shrubs. Farmers need to manage nutrients and pesticides carefully to avoid adverse effects on the environment and to reduce the costs of purchased inputs. However, the differences in crop returns are relatively small. Website: https://ask.usda.gov/s/, June Turner, Director Email: / Phone: (202) 720-8257, Find contact information for Regional and State Field Offices. 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. Adding miscellaneous income (straw, crop insurance, etc.) Be ready for a big profit swing for 2023 to the downside. 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. %%EOF From 2014 to 2018, farmer returns averaged -$30 per acre for corn and $64 per acre for soybeans. Egg prices peaked in December at around $5.43, then decreased 52% to $2.61 per dozen in February thanks to bird flu. hb```b``fb`e`0ed@ Aa,Y 4>hNem}AS1d03r3yU b<4,dPC765b/N`` r::y;L}/X8Q!7j0c|xq)f$=x>dC1^ ]< LK@&q;k !|HJ``*5 |pU_D u Z!, The break-even soybean price is $12.54. On rented farms, only operator income and expenses were recorded. Soybeans are projected to be more profitable in all regions of Illinois (see Table 1). As of Friday, $130 billion hadnt been spent, Tidgren said. it gets. For 2023, much higher prices than average historical prices are needed to maintain some profitability. 3 0 obj 1.494 billion bushels of Iowa corn in the 2018/19 marketing year went into corn processing used in the wet mill industry for food and industrials usage. Interest is not included. The average corn yield per acre has doubled in the last forty years. do champions league winners get automatic qualification. At the same time, farm income was forecast to increase nationwide in 2020 (see Farm Income and Wealth Statistics for details). 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. It's important to note that there was only 200 acres was family land that was purchased, at a slight discount to appraised value. Other than 160 acres purchased this year, he aquired this land 10+ years ago at an average land cost under $2,000/acre. Inflation is prevalent across the entire U.S. economy. 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 average cost per acre in the livestock corn division is $206 (minimum = $186 in 1993; maximum = $235 in 1987). 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. Net returns per acre to herbicide-tolerant soybean production would range from $42 to $78 per acre, depending on target yield and tillage practice. I do think were going to see more interest in flex rents, Johnson said. According to Iowa State it takes about 1.25 gallons of diesel fuel to cut, rake and bale per acre. "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. At 160 bushels per acre, it is $4.03. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. In fact, there was a farm in Dubuque County that sold on June 1st for $30,600/acre! 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. Since 2020, total costs have increased from $833 per acre to $1,161, an increase of $328 per acre, or 39%. For central Illinois high-productivity farmland, we are projecting an average return of $25 per acre for a corn-soybean rotation, Schnitkey says. All these serve to influence what a farmer can make from an acre of corn. Dec 9, 2014. Iowa ranked first in corn production in 2020 despite both drought and damaging derecho occurring during the season. State Corn Yield Per Acre: Causes of Variations. Sign-up for the CFAP program, through your local Farm Service Agency, is still underway. Quick Stats Lite provides a more structured approach to get commonly requested statistics from our online database. For corn, land costs account for about one-third of total costs of production (Figure 2). Because of industrial, seed, planting, and other kinds of modifications, what used to take days to plant can now be done in minutes. 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. More details on 2023 budgets are available in the management section of farmdoc through two documents: Schnitkey, G. and K. Swanson. Starting in 2021, the amount of nitrogen applied to corn production follows the recommendations from the ISU Corn Nitrogen Rate Calculator. In a year with low-corn-price predictions, every input must be reviewed to lower the cost of production. Your email address will not be published. This is a record yield and up substantially from 2020's average yield of 177 bushels per acre. Non-land costs are projected to be $860 in 2023, up from $758 in 2022. 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. The Ukraine-Russia war has further clouded the outlook and worsened supply chain issues. 14 percent or 2.065 billion bushels of Iowa corn was exported out of the state in the 2018/19 marketing year. 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. Given higher costs, break-even levels will be much higher. AgDay TV Markets Now: Randy Martinson of Martinson Ag Talks About How the February Crop Insurance Prices May Impact Planting Decisions. The next portion of each table shows expenses on a per acre basis. Timing of purchases. I do believe there will be some interest in lowering that fixed rent, Johnson said. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. The United States grew 1,304,003,000 bushels (i.e. corn and 59 bu. Inventory value gain or loss - change in value of crops or livestock sold due to differences in opening inventory price and final sale price. %PDF-1.6 % The USDA pegged the U.S. corn yield at 168.4 bushels per acre vs. the average trade estimate of 167.5 bu./acre and its previous estimate of 168.2. What is the average bushel of corn per acre? 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. Table 2 shows actual results for northern Illinois for 2021, along with projections for 2022 and 2023. Given higher costs, break-even levels for northern Illinois for corn are $5.34 per bushel on cash rented land. How about ag-chem and the application costs some of which might be biannual. Land costs account for 44% of total costs of soybean production, and variable costs account for an additional 42%. of Science and Technology First, fertilizer and lime costs include volume and early purchase discounts. We use a great deal of rope for odd jobs around the farm and at various community events. 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. 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. 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. 710,250 miles. 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. 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. Gourmet mushrooms. For a detailed statement, please see the University of Illinois Copyright Information and Policies here. The silage . 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 <. Agricultural price and income policy has been in place in different forms since World War I. For soybeans, the yield is pegged at 55 bushels an acre with an average selling price of $8.20 per bushel. 1. 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. Authors Television Broadcast average profit per acre of corn in iowa In 2023, total costs are projected at $1,161 per acre, up from the $1,054 level in. 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 $121 per acre in 2020, based on South Central College (SCC) Farm Business Management (FBM) data. The governmental agency estimated corn production at 13.77 billion bushels vs. the avg. Data for ending assets and liabilities represent those of the operator only, and do not include the value of rented land. Illinois Crop Budgets, 2023. Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, August 2, 2022. hbbd```b``"_HRD2I V&%T$/"9;@h$-"%H`f3N$_ j6@ d-z It appears you're visiting this site with a browser that is old and unsupported. 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. And those optimum populations increased yield of marketable ears by an average of 0.53 tons per acre. Hunting income is available to farmers. Net farm income, cash - total sales and other cash income minus cash expenses, including purchases of livestock and feed. In 2019, Iowa farmers produced around 2.58 billion bushels of corn for grain and harvested 13.1 million acres according to the U.S. Department of Agricultural Statistics Service. 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. Whole Farm > Costs & Returns > Record Summaries. Similarly, a projected 2014 soybean price of $12.70 compares to an average price of $9.69 from 2014 to 2019. The average cost per acre has been $238 (minimum = $215 during 1995; maximum = $260 during 1992). A safety net under revenue will be established when projected prices for crop insurance are determined in February 2023. Contract grazing: A flat rate is paid per animal per month or per day by the livestock owner to the landowner. 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. Seriously, Iowa grows about three times as much corn as a country like Mexico. Seed and fertilizers amount to 44% of variable costs. While 2023 is projected to be profitable, risks exist. 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. That is much lower than the return in 2021 when we had a record $413 per acre, and it is also above 2022 projections for returns of $156 per acre.. Yields are set at trend levels for 2023, with trends established through historical yields. . Average four-crop gross income per acre = approximately $790 per acre . goya cuban black beans recipe; July 9, 2022 . Risks will exist throughout the autumn as many decisions concerning 2023 production are made, and input prices are locked in. If you thinking of going into the corn farming business and are worried about what your income would look like, or you are just plain curious, we would try to provide an estimate of the profit that can be had per acre of farmed corn. 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 publication also includes budgets for alfalfa hay establishment with an oat companion crop and by direct seeding. Also included in the formula were revenue protection (RP) insurance at the 80% level . 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. Since 2013, soybeans have been more profitable than corn, albeit at much lower levels. Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. ISU used a a corn yield target of 200 bu./acre with an average price of $3.10 per bushel. Return on assets - net farm income, plus interest expense, minus value of operator and family labor, divided by total farm assets owned. The most profitable farm made $275 per acre while the least profitable lost $222 per acre. It is hard to trim costs so you can make a better profit if you dont know your inputs. Keep in mind that for the buyer, harvest costs for silage would be different than harvest costs for grain. 5552 0 obj <> endobj The farm record data utilized in this report were obtained from the Iowa Farm Business Association. Iowa farmers averaged 205 bushels per acre on corn for grain, the Jan. 12 report noted. Price = $5.00/bushel 2. The 1964 Iowa corn yield test The average corn yield per acre has doubled during the last forty years. Corn seed costs have increased 74% since the inception of the contest in 1987. The 2023 farmer return is projected to be close to the average from 2013 to 2019 when the return averaged $29 per acre. Your email address will not be published. We're still protecting positive returns for 2023 but there are risks. average profit per acre of corn in iowa. 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 fresh market and 4 to 6 tons per acre for processing. The most profitable farm made $275 per acre while the least profitable lost $222 per acre. NREL . 2 0 obj Area harvested for grain is estimated Corn for silage production is estimated at 5.33 million tons, down 33% from 2019. corn takes the worst figure in the study to the third best at $144 per acre profit . Corn is seen as a staple in the average family diet. Is this correct? Depreciation is estimated at 10% of current value of the machinery. Yield multiplied by price equals the total production return per acre. Do you want to know how much money corn farming businesses make yearly? The break-even soybean price is $12.54. <>>> 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. trade estimate of 13.68 billion and its previous estimate of 13.7 billion. Bonsai plants. 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. 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 . In 2023, farmer returns are projected at $25 per acre, well below levels for 2020 to 2022, when farmer returns averaged $232 per acre. bushel higher per acre when comparing to the five-year average from 2016 to 2020. But farmers also must maintain a production level that will result in profitable returns. 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. At $75 per ton, that's an extra $40 per acre in profit to the grower. % There likely will be a large PLC payment, Johnson said. <>/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>> endobj Corn stocks down, soybean stocks down from year earlier The deadline is August 28. 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. Guidelines are available here. In the livestock corn division, the average cost per acre is $206 (minimum = $186 during 1993; maximum = $235 during 1987). 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.