Are you getting any. 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. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. 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. 7 . 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. Thats exactly what we want all farmers doing to estimate their own costs of production! Non-land costs are projected to be $860 in 2023, up from $758 in 2022. Seed and fertilizers amount to 44% of variable costs. 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 For soybeans, the yield is pegged at 55 bushels an acre with an average selling price of $8.20 per bushel. Some speculate this could become a trend based on a hypothesis in how the disease is transmitted. A bit of luck here. Management return - accrual net farm income less 4% interest on value of equity (net worth), and wages for operator and family labor. <>>> An agricultural economics and business website. But despite this volatility, corn farmers are still making some good profit from their corn farms, depending on the yield of that year. Answer (1 of 4): The answer varies from farm to farm, field to field and year to year. Schnitkey, G. and K. Swanson. of Science and Technology However, vegetable processors choose the hybrid, provide seed of that hybrid, and set the population size. Will Bird Flu Become a Recurring Issue Each Year. This is $20 per acre lower than 2019. More details on 2023 budgets are available in the management section of farmdoc through two documents: Schnitkey, G. and K. Swanson. 1.3 Billion bushels) of winter wheat in 2019. In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. Special Tabulations and Restricted Microdata, 02/15/23 Still time to respond to the 2022 Census of Agriculture, USDA to follow up with producers who have not yet responded, 02/15/23 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), 01/31/23 United States cattle inventory down 3%, 01/30/23 2022 Census of Agriculture due next week Feb. 6, 01/12/23 Corn and soybean production down in 2022, USDA reports Adding miscellaneous income (straw, crop insurance, etc.) And in some years, growing corn may not be the best option. Corn and soybeans futures prices have recently rallied to their highest levels in years, providing hope for a market-driven profitable 2021 crop year. %%EOF 2021 farmer, landlord rent discussions to get interesting. The most profitable farm made $275 per acre while the least profitable lost $222 per acre from planted corn. The technology trend causes an upward slope of yield over time. 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. where did the 198,870 kWh per acre in Iowa come from? 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. Copyright 2023 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. From 2014 to 2018, farmer returns averaged -$30 per acre for corn and $64 per acre for soybeans. Also included in the formula were revenue protection (RP) insurance at the 80% level . The key points to remember when growing popcorn is to make sure it doesn't cross pollinate with other corn you may be growing. The average cost per acre in the livestock corn division is $206 (minimum = $186 in 1993; maximum = $235 in 1987). x=8z98[; @&bg6;bfV_de{HEv:r'@;EbIXoo.(~? Have a specific question for one of our subject experts? It allows you to customize your query by commodity, location, or time period. For northern Illinois, the break-even corn price is $5.34 per bushel on cash rented land. Higher yield ratios indicate that corn is relatively more productive than soybeans, and vice versa. 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 . The total cost per bushel of soybeans is projected at $9.04 for non-herbicide-tolerant beans at 56 bushels per acre, according to the report. The 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. Reference yields for corn and soybean budgets in the annual Iowa State University Extension and Outreach report reflect 30-year trend yields. Loans can be made through June 30 and this is money available, Tidgren said. 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. 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. All records were kept on the accrual, or inventory, basis. The biggest is that corn and soybean prices decline, and costs do not-- an event that could happen.. All Rights Reserved. The full report is available online through the Ag Decision Maker website. <>/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>> At 180 bushels per acre, it is $3.58 per bushel. How many farmers know what their inputs are, let alone their costs per acre or per bushel? Soybeans: 14 cents per bushel The base rate bushels increased in 2020 for wheat harvesting compared to that reported in 2018. Soybeans could trigger a $10-per-acre PLC or ARC-CO payment and CFAP would bring another $12 an acre. Inflation is prevalent across the entire U.S. economy. A continuous corn system would not be able to cover all costs even with high yields, and corn production following soybeans would generate $30 to $40 per acre in profits. Lower commodity prices are possible from any number of causes. of Science and Technology Farm Business Association data on farm family living expenses. 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. soybeans per acre, farms averaged $673 total revenue per acre and averaged $664 total cost per acre. This is a record yield and up substantially from 2020's average yield of 177 bushels per acre. 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. The average corn yield per acre has _____ during the last forty years. The 1964 Iowa corn yield test 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. These variations impact US state corn production.. Each is important for creating an accurate corn yield forecast. Willows . Alejandro Plastina, extension economist, 515-294-6160, plastina@iastate.edu, Department of Economics Required fields are marked *. bushel higher per acre when comparing to the five-year average from 2016 to 2020. The average price per acre for farmland in Iowa is currently $13,859.79/acre. The state average soybean yield was 58.5 bushels per acre, down 4.5 bushels from 63.0 bushels per acre last year. There likely will be a large PLC payment, Johnson said. 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. Return on equity - net farm income minus value of operator and family labor, divided by net worth. average profit per acre of corn in iowa. %PDF-1.6 % 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. In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. 5578 0 obj <>/Filter/FlateDecode/ID[<8A85A9343CE4BC4388299899869A550C>]/Index[5552 47]/Info 5551 0 R/Length 121/Prev 259394/Root 5553 0 R/Size 5599/Type/XRef/W[1 3 1]>>stream What is the average bushel of corn per acre? 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). Lavender farming can produce above-average profits for small growers, as it is such a versatile crop. Average four-crop gross income per acre = approximately $790 per acre . Interest is not included. 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. Table 2 shows actual results for northern Illinois for 2021, along with projections for 2022 and 2023. Risks will exist throughout the autumn as many decisions concerning 2023 production are made, and input prices are locked in. The top portion of each table shows income. How can I make money with 10 acres? 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. Variable costs decreased $10 per acre or 2 percent, other nonland costs decreases $14 per acre, and land costs increased $4 per . No other revenues are projected, giving a gross revenue projection of $567 per acre. On rented farms, only operator income and expenses were recorded. Sign-up for the CFAP program, through your local Farm Service Agency, is still underway. 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. Davis Michaelsen and Editor Brian Grete discuss this week's market action From conventional horizontal tillage to strip-till and no-till, the key is applying a production system that can overcome each fields weakness. As shown in Table 2, most costs are projected to increase. Arable Farmer. Iowa produced almost 500 times more corn than Utah, which ranks #41 in US corn production by state. 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)? Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. Your email address will not be published. Given higher costs, break-even levels will be much higher. <> 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. All https://www.barchart.com/solutions/ is provided by Barchart Solutions. 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? Because of industrial, seed, planting, and other kinds of modifications, what used to take days to plant can now be done in minutes. In 2023, total costs are projected at $1,161 per acre, up from the $1,054 level in 2022. Net farm income, cash - total sales and other cash income minus cash expenses, including purchases of livestock and feed. For 2019, a 63 bushel per acre yield and $9.00 per bushel price are used in projections, giving $567 of crop revenue. This material may not be published, broadcast, rewritten,or redistributed. Profits from soybean production would exceed $110 per acre. 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. The average of all farms in each table represents a weighted average of the values for each size group listed. Projected prices are $5.30 per bushel for corn and $12.70 for soybeans, near current 2023 fall bids. For soybeans, with $621 in income, total direct costs are $485. Since 2013, soybeans have been more profitable than corn, albeit at much lower levels. County yields ranged from 37.9 bushels per acre in Decatur County to 69.1 bushels per acre in Scott County. All rights reserved. The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. Price = $5.00/bushel 2. Domestic use, exports, and ending stocks are also unchanged for 2020 /21. The governmental agency estimated corn production at 13.77 billion bushels vs. the avg. 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. For corn, Johnson estimates a PLC payment of $65 an acre. History suggests that low prices would not lead quickly to lower costs, as costs typically exhibit lags in adjustments. It is hard to trim costs so you can make a better profit if you dont know your inputs. Depreciation is estimated at 10% of current value of the machinery. Soybeans are projected to be more profitable in all regions of Illinois (see Table 1). The data for this report were collected by Iowa Farm Business Association consultants and compiled by Iowa State University Extension and Outreach. it gets. In 2023, total costs are projected at $1,161 per acre, up from the $1,054 level in. 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.