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Iowa's corn for grain yield is estimated at 178 bushels per acre. Take, for example, the Central CRD in Illinois. 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. And those optimum populations increased yield of marketable ears by an average of 0.53 tons per acre. The average of all farms in each table represents a weighted average of the values for each size group listed. The most profitable farm made $275 per acre while the least profitable lost $222 per acre. Because of industrial, seed, planting, and other kinds of modifications, what used to take days to plant can now be done in minutes. 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. Soybeans are projected to be more profitable in all regions of Illinois (see Table 1). The most profitable farm made $275 per acre while the least profitable lost $222 per acre from planted corn. 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 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 top portion of each table shows income. Johnson expects federal payments to come from two main sources, the farm bill programs of ARC (Agriculture Risk Coverage) and PLC (Price Loss Coverage) and from extraordinary payments meant to cushion losses from the economic effects of the coronavirus. 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. Schnitkey, G. and K. Swanson. And in some years, growing corn may not be the best option. That's anywhere from $2,500 to more than $10,000 per acre gross profit! For corn, land costs account for about one-third of total costs of production (Figure 2). As of Friday, $130 billion hadnt been spent, Tidgren said. For soybeans, he estimates smaller federal payments of $32 an acre. Interest is not included. This material may not be published, broadcast, rewritten,or redistributed. For soybeans, he estimates smaller federal payments of $32 an acre. Ames, IA 50011-1054. 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 yields are coming in anywhere from 130 bushels per acre 776 Math Specialists. #18. 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. <>/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>> 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. . In this scenario, production of herbicide tolerant and non-herbicide tolerant soybean would be profitable for all target yields considered in the report. All rights reserved. Risks will exist throughout the autumn as many decisions concerning 2023 production are made, and input prices are locked in. Corn stocks down, soybean stocks down from year earlier 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 rest of expected federal payments will be from CFAP, at about $30 an acre. Corn and soybeans futures prices have recently rallied to their highest levels in years, providing hope for a market-driven profitable 2021 crop year. Woody ornamentals. Second, farmers paying land rents higher than the ones projected in the report might face higher costs of production. In 2023, farmer returns are projected at $25 per acre, well below levels for 2020 to 2022, when farmer returns averaged $232 per acre. 5552 0 obj <> endobj 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. At 180 bushels per acre it is $3.58 per bushel. 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 . The biggest is that corn and soybean prices decline, and costs do not-- an event that could happen.. Quick Stats Lite provides a more structured approach to get commonly requested statistics from our online database. Until that point, the risks of low returns from price declines will be large. trade estimate of 13.68 billion and its previous estimate of 13.7 billion. Adding miscellaneous income (straw, crop insurance, etc.) The 1964 Iowa corn yield test 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. It's important to note that there was only 200 acres was family land that was purchased, at a slight discount to appraised value. Depreciation is estimated at 10% of current value of the machinery. The 2020-2021 national average corn price, which will be finalized on Sept. 30, is now estimated at $4.40 per bushel. The most profitable farm made $275 per acre while the least profitable lost $222 per acre. Starting in 2021, the amount of nitrogen applied to corn production follows the recommendations from the ISU Corn Nitrogen Rate Calculator. Written byAlejandro Plastina,Extension Economist,plastina@iastate.edu. Whole Farm > Costs & Returns > Record Summaries. 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. Are you getting any. Total non-land costs for corn are estimated at $420 an acre and for soybeans at $266 an acre. Overall, costs have increased dramatically since 2020, from $577 to $860, an increase of $283 per acre, or a 49% increase. 1 0 obj 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. Your email address will not be published. The average corn yield per acre has _____ during the last forty years. All Rights Reserved. Non-land costs are projected to be $860 in 2023, up from $758 in 2022. Knowing costs is key, as it is to understand the assumptions behind the budgets used in the calculations. While commodity prices are projected lower, those prices still are not low by historical standards. 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. Represents a return to unpaid labor, net worth (equity), management, and profit. Guidelines are available here. Additionally, what used to take days to plant can now be done in minutes. At 180 bushels per acre, it is $3.58 per bushel. But farmers also must maintain a production level that will result in profitable returns. Illinois Crop Budgets, 2023. Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, August 2, 2022. Having considered all variables, experts have come to the conclusion that farms averaged $673 total revenue per acre and averaged $664 total cost per acre. 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. The 2022 projected costs exceed 2021 cost of $652 per acre by $124 per acre. U.S. farmland values remained high in 2020, averaging $3,160 per acre, a small decrease of 0.8 percent compared with 2019. While advancements in technology make producing corn more efficient, there are still commodity markets which must be contended with. 14 percent or 2.065 billion bushels of Iowa corn was exported out of the state in the 2018/19 marketing year. 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 . There has been an upward trend in the 4 0 obj 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. 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 largest proportion of costs involved in corn farming is land, fertilizer, and fixed and variable equipment. Bonsai plants. ~ 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 Land costs account for 44% of total costs of soybean production, and variable costs account for an additional 42%. Those break-even price are above average prices received from 2014 to 2019: $3.66 per bushel for corn and $9.69 for soybeans. Projected prices are $5.30 per bushel for corn and $12.70 for soybeans, near current 2023 fall bids. Contact a specialist. Click Image to Enlarge Changing Use Impacts Corn and Soybean Returns The average corn yield per acre has doubled in the last forty years. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. 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. Gross income = $950 / acre 4. With an average direct cost of $751 per acre of corn and $900 in sales, the farmer has about $149 left. 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. Explore Statistics By State By Subject Crops and Plants Demographics Economic and Prices Environmental Livestock and Animals Research, Science, and Technology Charts and Maps Yield multiplied by price equals the total production return per acre. 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. Since 2020, total costs have increased from $833 per acre to $1,161, an increase of $328 per acre, or 39%. 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 governmental agency estimated corn production at 13.77 billion bushels vs. the avg. endobj Net farm income, cash - total sales and other cash income minus cash expenses, including purchases of livestock and feed. The estimated cost of production for continuous corn is $3.88 per bushel for a target yield of 166 bushels per acre, and it goes down to $3.82 for target yields of 184 and 202 bushels per acre. Garlic. 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. At the landowner webinar, Kristine Tidgren, director of ISUs Center for Agricultural Law and Taxation, covered the highlights of the nearly $700 billion program. While 2023 is projected to be profitable, risks exist. "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. 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. Required fields are marked *. Want more news on this topic? 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. A safety net under revenue will be established when projected prices for crop insurance are determined in February 2023. 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. Yields are set at trend levels for 2023, with trends established through historical yields. 1). Other than 160 acres purchased this year, he aquired this land 10+ years ago at an average land cost under $2,000/acre. There likely will be a large PLC payment, Johnson said. 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. 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. Value of farm production - value of crops produced (at market price), livestock production (net of feed and purchased livestock), inventory value gain or loss, and miscellaneous income. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. It will take nearly all of that to reach Johnson's projected net return to the farmer of $86.60 an acre for corn. For northern Illinois, the break-even corn price is $5.34 per bushel on cash rented land. Given higher costs, break-even levels will be much higher. The 2022 fertilizer costs will likely top the average fertilizer expenses of $194 . 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. "pdf" file that you can access by clicking here. Since 2020, total costs have increased from $833 per acre to $1,161, an increase of $328 per acre, or 39%. Domestic use, exports, and ending stocks are also unchanged for 2020 /21. Copyright 2023 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. The break-even soybean price is $12.54. The farm record data utilized in this report were obtained from the Iowa Farm Business Association. When using the ISU cost of production estimates for 2021, keep several things in mind. 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 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. Farm Business Association data on farm family living expenses. The average yield in their database is 60 bushels (beans) and 204 bushels (corn). We use a great deal of rope for odd jobs around the farm and at various community events. 710,250 miles. 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). To continue using this site and its features, you will need to use a newer browser. In 2019/2020, Iowa corn growers grew an average of 178 bushels per acre. The data for this report were collected by Iowa Farm Business Association consultants and compiled by Iowa State University Extension and Outreach. Gourmet mushrooms. Japanese maples. Overall, costs have increased dramatically since 2020, from $577 to $860, an increase of $283 per acre, or a 49% increase. 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. Authors Television Broadcast average profit per acre of corn in iowa For central Illinois high-productivity farmland, we are projecting an average return of $25 per acre for a corn-soybean rotation, Schnitkey says. The silage . How can I make money with 10 acres? {\U{f~uoos;h?zYQ HUoTn>'?{GYHY S|DB?QBZ?Bj+W?=}(]'+?L p?8Pv' B5UFWVTM}UJ9{QGQ4tOygp9 z,OloloKOlfo+V} \f>8t&^U `H198R00t(0TM Up!X ['SMezWgop%B R 1&[UMSi4!k Zm]4#7{qmS7v;lW->b.%I zv9 All rights reserved. More than 200 counties across the Corn Belt had county average rental rates above $200 per acre, with . The increase between the five and ten-year averages is because the very high prices of the drought years (2011-2013) are added in. A great alternative browser focused on user privacy. To see all exchange delays and terms of use, please see https://www.barchart.com/solutions/terms. The tables are calculated on a per acre basis. Ways to Make Money Off Your Land Almost Immediately Rent plots to groups looking to build a community garden. 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. 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. Soybeans: 14 cents per bushel The base rate bushels increased in 2020 for wheat harvesting compared to that reported in 2018. 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. 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. For soybeans, with $621 in income, total direct costs are $485. For 2019, a 63 bushel per acre yield and $9.00 per bushel price are used in projections, giving $567 of crop revenue. The graph below shows the US national average winter wheat yield in bushels per acre as reported by the USDA NASS . 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. 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 At a Farmland Owners Update webinar, Johnson said he estimates that Iowa farmers, on average, will receive about $95 an acre in federal payments for the 2020 corn crop. endstream endobj startxref Soybeans could trigger a $10-per-acre PLC or ARC-CO payment and CFAP would bring another $12 an acre. 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. At 160 bushels per acre, it is $4.03. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. 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. Area harvested for grain is estimated Corn for silage production is estimated at 5.33 million tons, down 33% from 2019. How about ag-chem and the application costs some of which might be biannual. of Science and Technology Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. Email: askusda@usda.gov The first release of the 2023 Illinois Crop Budgets is available on farmdoc. The average price per acre for farmland in Iowa is currently $13,859.79/acre. 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. Iowa State University Extension and Outreach, Managing farm costs key to profitability in 2021. Have a specific question for one of our subject experts? Over time, corn yields have increased an average of 2.0 bushels per acre, while soybean yields have increased by .5 bushels per acre. County yields ranged from 37.9 bushels per acre in Decatur County to 69.1 bushels per acre in Scott County. In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. stream Interest is not included. Government programs to protect farmers from agriculture risk have been around for many years, Although ARC and PLC have only been around since 2014. Return on assets - net farm income, plus interest expense, minus value of operator and family labor, divided by total farm assets owned. Farmer returns are projected to be lower for 2023, as is illustrated in Figure 2, which shows farmer returns for central Illinois farmland with high productivity farmland. 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. But despite this volatility, corn farmers are still making some good profit from their corn farms, depending on the yield of that year. It is difficult to predict corn-production economics. where did the 198,870 kWh per acre in Iowa come from? It is hard to trim costs so you can make a better profit if you dont know your inputs. 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. Egg prices peaked in December at around $5.43, then decreased 52% to $2.61 per dozen in February thanks to bird flu. Over time, corn yields have increased an average of 2.0 bushels per acre, while soybean yields have increased by .5 bushels per acre. 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. Farmers need to manage nutrients and pesticides carefully to avoid adverse effects on the environment and to reduce the costs of purchased inputs. 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. Similarly, a projected 2014 soybean price of $12.70 compares to an average price of $9.69 from 2014 to 2019. Hunting income is available to farmers. Central Illinois with high-productivity farmland, Central Illinois with low-productivity farmland, and. Price = $5.00/bushel 2. Having considered all variables, experts have come to the conclusion that farms averaged $673 total revenue per acre and averaged $664 total cost per acre. Alejandro Plastina, extension economist, 515-294-6160, plastina@iastate.edu, Department of Economics The first round of 2023 Illinois Crop Budgets released by the University of Illinois show a clear trend of higher costs and lower returns. endobj I do think were going to see more interest in flex rents, Johnson said. The Guide also reports expected variable costs of $403 per acre. This early in the season, Johnsons estimates are estimates, of course. Corn: 13 cents per bushel in charge; then 4 cents per month prorated daily through August 31, 2023. <> Projected returns range from $13.50 per acre for dryland corn to $194.55 per acre for irrigated corn. The wage rate used for operator labor was $2,500 per month. 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? Another grower and customer favorite is Elephant garlic, whose large, mild cloves bring $6-$8 per pound. Futures: at least 10 minute delayed. For a detailed statement, please see the University of Illinois Copyright Information and Policies here. State Corn Yield Per Acre: Causes of Variations. soybeans per acre, farms averaged $673 total revenue per acre and averaged $664 total cost per acre. He estimates the average cash rent in Iowa this year at $222 per acre, which has changed little over the past four years. 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. According to Iowa State it takes about 1.25 gallons of diesel fuel to cut, rake and bale per acre. Such methodological adjustment resulted in an average 6% increase in the amount of nitrogen applied to corn following corn, and an 11% increase in the amount applied to corn following soybeans. Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. Obviously, risks of lower returns exist. Sac county had the largest year-over-year increase of 5.8 bushels per acre while Plymouth County saw the largest decrease of . Even with those, the net return on beans is projected at a negative $15 an acre. No other revenues are projected, giving a gross revenue projection of $567 per acre. 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. Net farm income, accrual - cash net income adjusted for inventory changes and accrued expenses. In a year with low-corn-price predictions, every input must be reviewed to lower the cost of production. Iowa produced almost 500 times more corn than Utah, which ranks #41 in US corn production by state. There is substantial uncertainty regarding crop prices in the coming season. 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. Based on these numbers, corn is estimated to return about $155 per acre and beans will return about $70. Does not include principal borrowed or repaid, sales and purchases of capital assets, or nonfarm income and expenses. From 2014 to 2018, farmer returns averaged -$30 per acre for corn and $64 per acre for soybeans.