1.3 Billion bushels) of winter wheat in 2019. 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. M. The 2022 projected costs exceed 2021 cost of $652 per acre by $124 per acre. 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. Have a specific question for one of our subject experts? The 1964 Iowa corn yield test The average corn yield per acre has doubled during the last forty years. 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. 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. Woody ornamentals. Corn seed costs are expected to increase by 2% to $262 per bag. Home Business ideas Agriculture Industry Crop Cultivation. 5598 0 obj <>stream Gross income = $950 / acre 4. The full report is available online through the Ag Decision Maker website. The first release of the 2023 Illinois Crop Budgets is available on farmdoc. Depreciation is estimated at 10% of current value of the machinery. If water requirements are met with a good irrigation system and other cultural practices optimized, sweet corn yields can be up to 7 to 8 tons per acre or 2,000 dozen. Required fields are marked *. . In an average year, Iowa produces more corn than most countries. The deadline is August 28. 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. Be ready for a big profit swing for 2023 to the downside. 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. © 1995 - 2023 Farm Journal, Inc. All RightsReserved. How to Write a Community Garden Business Plan [Sample Template], 10 Best Agricultural Crops That are Most Profitable Per Acre, How to Write a Hemp Processing Plant Business Plan [Sample Template], How to Start a Cut Flower Business in 19 Steps, How to Start a Tea Farm Sample Business Plan Template, How to Start a Peanut Farm Sample Business Plan Template, How to Start a Cucumber Farm Sample Business Plan Template, How to Start a Plantain Farm Sample Business Plan Template, How to Start a Sunflower Farm Sample Business Plan Template, How to Start an Avocado Pear Farm Sample Business Plan Template. Projected prices are $5.30 per bushel for corn and $12.70 for soybeans, near current 2023 fall bids. Additionally, what used to take days to plant can now be done in minutes. 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. There has been an upward trend in the Ways to Make Money Off Your Land Almost Immediately Rent plots to groups looking to build a community garden. holding off on buying and working with what I have. I do think were going to see more interest in flex rents, Johnson said. In 2023, total costs are projected at $1,161 per acre, up from the $1,054 level in 2022, Schnitkey says. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 1995-document.write(new Date().getFullYear()) For 2021, Purdue's Crop Cost and Return Guide suggests and expected corn yield of 180 bushels per acre for rotation corn on average quality farmland. Government programs called Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) can help farmers protect against the risks of weather and prices. _. The farm record data utilized in this report were obtained from the Iowa Farm Business Association. Agricultural price and income policy has been in place in different forms since World War I. 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. Based on these numbers, corn is estimated to return about $155 per acre and beans will return about $70. 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. All these serve to influence what a farmer can make from an acre of corn. 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. ISU used a a corn yield target of 200 bu./acre with an average price of $3.10 per bushel. 5552 0 obj <> endobj According to Iowa State it takes about 1.25 gallons of diesel fuel to cut, rake and bale 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. At 180 bushels per acre it is $3.58 per bushel. endobj While fertilizer prices have declined recently (see farmdoc daily, July 19, 2022), fertilizer prices are still much higher than last year. Arable Farmer. 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. By accessing or using the Service you agree to be bound by these Terms. The cost estimates are representative of average costs for farms in Iowa. 1. The estimated costs of production per bushel for corn following soybeans are $3.34, $3.31, and $3.32 for target yields of 181, 201, and 221 bushels per acre, respectively. Inventory value gain or loss - change in value of crops or livestock sold due to differences in opening inventory price and final sale price. 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. Risks will exist throughout the autumn as many decisions concerning 2023 production are made, and input prices are locked in. However, vegetable processors choose the hybrid, provide seed of that hybrid, and set the population size. In 2023, total costs are projected at $1,161 per acre, up from the $1,054 level in 2022. Click Image to Enlarge Changing Use Impacts Corn and Soybean Returns For corn, he used an estimated yield of 198 bushels and a price of $3.20 per bushel. Price = $5.00/bushel 2. ~ 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 No other revenues are projected, giving a gross revenue projection of $567 per acre. 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. Profits from soybean production would exceed $110 per acre. Soybeans are projected to be more profitable in all regions of Illinois (see Table 1). 1 0 obj It appears you're visiting this site with a browser that is old and unsupported. At the same time, farm income was forecast to increase nationwide in 2020 (see Farm Income and Wealth Statistics for details). Quick Stats Lite provides a more structured approach to get commonly requested statistics from our online database. corn takes the worst figure in the study to the third best at $144 per acre profit . Interest rates, energy prices, and wage rates continue to increase, and supply issues that began in Covid have not been resolved. In the livestock corn division, the average cost per acre is $206 (minimum = $186 during 1993; maximum = $235 during 1987). 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. Gourmet mushrooms. 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. Those break-even prices are above average prices received from 2014 to 2019 ($3.66 per bushel for corn and $9.69 for soybeans). Yields are set at trend levels for 2023, with trends established through historical yields. Another grower and customer favorite is Elephant garlic, whose large, mild cloves bring $6-$8 per pound. In the livestock corn division, the average cost per acre is $206 (minimum = $186 during 1993; maximum = $235 during 1987). Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. Sac county had the largest year-over-year increase of 5.8 bushels per acre while Plymouth County saw the largest decrease of . gendergp subscription cost. For soybeans, he estimates smaller federal payments of $32 an acre. 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. for the fresh market and 4 to 6 tons per acre for processing. The state average is 1,000 to 1,200 dozen per acre or 200 to 240 crates . Projections are for a return to much lower profits in 2023, continuing a pattern of rising and falling farm incomes. Knowing costs is key, as it is to understand the assumptions behind the budgets used in the calculations. 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. An agricultural economics and business website. State Corn Yield Per Acre: Causes of Variations. Only farms with sales of $100,000 or more were counted in making the weighting. Your email address will not be published. 1). 4 0 obj 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. Still, you can apply up through June 30 at your bank or Farm Credit System lender that is participating in the program. 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. Livestock returns per $100 feed fed - value of livestock production minus livestock purchases, divided by value of feed fed, multiplied by 100. endstream endobj startxref Loans can be made through June 30 and this is money available, Tidgren said. The soybean price of $8.20 is only 20 under the soybean reference price of $8.40. 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. U.S. farmland values remained high in 2020, averaging $3,160 per acre, a small decrease of 0.8 percent compared with 2019. In fact, there was a farm in Dubuque County that sold on June 1st for $30,600/acre! x=8z98[; @&bg6;bfV_de{HEv:r'@;EbIXoo.(~? <>/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>> Whole Farm > Costs & Returns > Record Summaries. A safety net under revenue will be established when projected prices for crop insurance are determined in February 2023. A great alternative browser focused on user privacy. Soybeans could trigger a $10-per-acre PLC or ARC-CO payment and CFAP would bring another $12 an acre. 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. These returns are for a typical 50% corn and 50% soybean rotation in central Illinois. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. 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. Across FBFM farms , farmer returns for corn averaged $8 per acre in 2018, with an average yield of 237 bushels per acre, and an average price of $3.60 per bushel . Are you getting any. The next portion of each table shows expenses on a per acre basis. of Science and Technology While commodity prices are projected lower, those prices still are not low by historical standards. 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 average price per acre for farmland in Iowa is currently $13,859.79/acre. The Ukraine-Russia war has further clouded the outlook and worsened supply chain issues. 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. ", 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. In recent years, corn profits have been significantly more volatile than years past. Corn Following Corn 167 bushels per acre 185 bushels per acre 204 bushels per acre Your Fixed Variable Fixed Variable Fixed Variable Estimate Preharvest Machinery 1/ $28.30 $27.10 $ Seed, Chemical, etc. 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. Learn . Want more news on this topic? Even with those, the net return on beans is projected at a negative $15 an acre. Corn production would not be profitable in a continuous corn scenario if the price per bushel is $3.65. 518 Farm House Lane 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. Authors Television Broadcast average profit per acre of corn in iowa Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. So any change requires processor buy-in. Iowa State University In 2019/2020, Iowa corn growers grew an average of 178 bushels per acre. Sign-up for the CFAP program, through your local Farm Service Agency, is still underway. Timing of purchases. 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 In recent years, corn profits have been significantly more volatile than in years past, thus affecting the income of farmers per acre. % The rest of expected federal payments will be from CFAP, at about $30 an acre. 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. Nitrogen price is projected stable at $.34 per pound in 2021, but total nitrogen costs are projected to go up by 6 to 11% reflecting the higher application rates recommended by the ISU Corn Nitrogen Rate Calculator. 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. If theyre paying average cash rent, theyre not making any money, Johnson said of his outlook for soybeans. Seriously, Iowa grows about three times as much corn as a country like Mexico. 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. Farm Bureau members may subscribe for a free email news service, featuring the farm and rural topics that interest them most. However, the differences in crop returns are relatively small. 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. If another $101 is used for indirect costs, that leaves the farmer with $48 profit 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. 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 . farmdoc daily (12):106, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, July 19, 2022. 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)? 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 break-even soybean price is $12.54. Interest is not included. County yields ranged from 37.9 bushels per acre in Decatur County to 69.1 bushels per acre in Scott County. I do believe there will be some interest in lowering that fixed rent, Johnson said. In this scenario, production of herbicide tolerant and non-herbicide tolerant soybean would be profitable for all target yields considered in the report. Explore Statistics By State By Subject Crops and Plants Demographics Economic and Prices Environmental Livestock and Animals Research, Science, and Technology Charts and Maps Management return - accrual net farm income less 4% interest on value of equity (net worth), and wages for operator and family labor. Ames, IA 50011-1054. <>>> More details on 2023 budgets are available in the management section of farmdoc through two documents: Schnitkey, G. and K. Swanson. A central Illinois corn farmer will make a $24 per acre profit in 2022 after paying for inputs and land costs, according to the latest crop budgets from the University of Illinois. Email: askusda@usda.gov Iowa produced almost 500 times more corn than Utah, which ranks #41 in US corn production by state. "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. Start blogging about your newest farming adventures. Your email address will not be published. The Quick Stats Database is the most comprehensive tool for accessing agricultural data published by NASS. Fuel and insecticide costs, interest expenses on pre-harvest input financing, and crop insurance premiums are projected lower in 2021. This measures the total production per farm. 10 Most Profitable Specialty Crops to Grow Lavender. Since 2013, soybeans have been more profitable than corn, albeit at much lower levels. Central Illinois with high-productivity farmland, Central Illinois with low-productivity farmland, and. Those differences are not likely to change normal rotational decisions. In 2023, farmer returns are projected at $25 per acre, well below levels for 2020 to 2022, when farmer returns averaged $232 per acre. Until that point, the risks of low returns from price declines will be large. 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. 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. 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. 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. We are projecting higher fertilizer costs in 2023. Japanese maples. Sell local honey at farmers markets. 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. 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. Yield multiplied by price equals the total production return per acre. In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. The governmental agency estimated corn production at 13.77 billion bushels vs. the avg. As shown in Table 2, most costs are projected to increase. 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. From 2014 to 2018, farmer returns averaged -$30 per acre for corn and $64 per acre for soybeans. The technology trend causes an upward slope of yield over time. The largest proportion of costs involved in corn farming is land, fertilizer, and fixed and variable equipment. Machinery costs are projected to decline by 6% primarily due to lower diesel costs: $2.02 in 2021 versus $2.53 in 2020. 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. AgDay TV Markets Now: Randy Martinson of Martinson Ag Talks About How the February Crop Insurance Prices May Impact Planting Decisions. 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. 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). Adding miscellaneous income (straw, crop insurance, etc.) "Nitrogen Fertilizer Outlook for 2023 Decisions." 2 0 obj 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. Given higher costs, break-even levels for northern Illinois for corn are $5.34 per bushel on cash rented land. The total cost per bushel of soybeans is projected at $8.72 for non-herbicide-tolerant beans at 56 bpa, according to the report.".