average profit per acre of corn in iowa

We're still protecting positive returns for 2023 but there are risks. 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. The 'Forgotten' Homestead Crop That Can Yield $10,000 Per ACRE Variable costs represent just over half of the costs of production, and nitrogen and seed costs account for about 43% of the variable costs. 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 . Contact a specialist. The season average price for corn, projected in USDAs most recent supply and demand estimates, is $3.20, well below the $3.70 reference price that triggers PLC payments. PDF 2023 Estimated Costs of Crop Production in Iowa - Iowa State University How can I make money with 10 acres? 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. The United States grew 1,304,003,000 bushels (i.e. The break-even soybean price is $12.54. Agricultural price and income policy has been in place in different forms since World War I. While commodity prices are projected lower, those prices still are not low by historical standards. The next portion of each table shows expenses on a per acre basis. Average Corn and Soybean Yields Across the Midwest 0 Website: https://ask.usda.gov/s/, June Turner, Director Email: / Phone: (202) 720-8257, Find contact information for Regional and State Field Offices. The 2023 farmer return is projected to be close to the average from 2013 to 2019 when the return averaged $29 per 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. Corn: Record High Input Costs Pressure Profit Outlook - DTN %PDF-1.6 % We are projecting higher fertilizer costs in 2023. Since 2013, soybeans have been more profitable than corn, albeit at much lower levels. The average cost per acre has been $238 (minimum = $215 during 1995; maximum = $260 during 1992). Loans can be made through June 30 and this is money available, Tidgren said. Cost of production in 2018 is predicted to be $645 per acre . Interest is not included. 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. 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 Inventory value gain or loss - change in value of crops or livestock sold due to differences in opening inventory price and final sale price. 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. Ways to Make Money Off Your Land Almost Immediately Rent plots to groups looking to build a community garden. 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. Table 1 provides corn and soybean budgets for four regions of Illinois: More detailed budgets are available here in the management section of farmdoc. Return on assets - net farm income, plus interest expense, minus value of operator and family labor, divided by total farm assets owned. However, higher expected corn yields over a 30-year trend for 2021 suggest that on a per bushel basis, costs would increase by 1.0% 2.6% to remain below their 2019 marks (Figure 1). 2021 Iowa Farm Costs and Returns | Ag Decision Maker Farm Business Association data on farm family living expenses. Area harvested for grain is estimated Corn for silage production is estimated at 5.33 million tons, down 33% from 2019. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 1995-document.write(new Date().getFullYear()) 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. The 2020-2021 national average corn price, which will be finalized on Sept. 30, is now estimated at $4.40 per bushel. 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. 710,250 miles. Total non-land costs for corn are estimated at $420 an acre and for soybeans at $266 an acre. Have a specific question for one of our subject experts? Seriously, Iowa grows about three times as much corn as a country like Mexico. Return on equity - net farm income minus value of operator and family labor, divided by net worth. What is the Most Profitable Crop Per Acre to Farm in 2022? Dramatically increasing sweet corn yield, profit | Morning Ag Clips Depreciation is estimated at 10% of current value of the machinery. However, the differences in crop returns are relatively small. In the livestock corn division, the average cost per acre is $206 (minimum = $186 during 1993; maximum = $235 during 1987). Fuel and insecticide costs, interest expenses on pre-harvest input financing, and crop insurance premiums are projected lower in 2021. 14 percent or 2.065 billion bushels of Iowa corn was exported out of the state in the 2018/19 marketing year. It is hard to trim costs so you can make a better profit if you dont know your inputs. Arable Farmer. corn takes the worst figure in the study to the third best at $144 per acre profit . 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. Corn, Soybeans: Farm Profitability - More Federal Aid Needed All records were kept on the accrual, or inventory, basis. 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. In 2019/2020, Iowa corn growers grew an average of 178 bushels per acre. Iowa farmers averaged 205 bushels per acre on corn for grain, the Jan. 12 report noted. How Much Profit Per Acre of Corn Can a Farmer Make Yearly? NREL . 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. Current futures prices seem to indicate that corn and soybean prices might average $3.90 and $9.50 per bushel in 2020-21, respectively. Crop budgets | UMN Extension Corn costs were much smoother than prices. Is this correct? Guidelines are available here. 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. I would think that corn seed with CRW resistance would be higher in cost. The top portion of each table shows income. In 2023, farmer returns are projected at $25 per acre, well below levels for 2020 to 2022, when farmer returns averaged $232 per acre. A great alternative browser focused on user privacy. 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. 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. The first round of 2023 Illinois Crop Budgets released by the University of Illinois show a clear trend of higher costs and lower returns. In the livestock corn division, the average cost per acre is $206 (minimum = $186 during 1993; maximum = $235 during 1987). And Mexico is huge! In this scenario, production of herbicide tolerant and non-herbicide tolerant soybean would be profitable for all target yields considered in the report. 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. There has been an upward trend in the % stream Corn stocks down, soybean stocks down from year earlier To see all exchange delays and terms of use, please see https://www.barchart.com/solutions/terms. 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. The Guide also reports expected variable costs of $403 per acre. endobj _. This early in the season, Johnsons estimates are estimates, of course. 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). of Science and Technology The rest of expected federal payments will be from CFAP, at about $30 an acre. Schnitkey, G. and K. Swanson. Iowa 2020 corn profits rely on payments, expert says Variable costs decreased $10 per acre or 2 percent, other nonland costs decreases $14 per acre, and land costs increased $4 per . Are you getting any. Egg prices peaked in December at around $5.43, then decreased 52% to $2.61 per dozen in February thanks to bird flu. Corn: Yield per Harvested Acre by County - USDA Given higher costs, break-even levels will be much higher. %PDF-1.5 Sell local honey at farmers markets. 1 0 obj Since 2020, total costs have increased from $833 per acre to $1,161, an increase of $328 per acre, or 39%. Interest is not included. There likely will be a large PLC payment, Johnson said. gendergp subscription cost. The data for this report were collected by Iowa Farm Business Association consultants and compiled by Iowa State University Extension and Outreach. Because of industrial, seed, planting, and other kinds of modifications, what used to take days to plant can now be done in minutes. Seed and fertilizers amount to 44% of variable costs. Yield multiplied by price equals the total production return per acre. Pricing standing corn silage - Farm Management 2021 Purdue Crop Cost and Return Guide - Purdue Ag Econ Report 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. In recent years, corn profits have been significantly more volatile than years past. "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 180 bushels per acre, it is $3.58 per bushel. For northern Illinois, the break-even corn price is $5.34 per bushel on cash rented land. For soybeans, with $621 in income, total direct costs are $485. Many farmers purchased fertilizer for 2022 before much of the price increase in fall and early winter of 2021. The average of all farms in each table represents a weighted average of the values for each size group listed. 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 The graph below shows the US national average winter wheat yield in bushels per acre as reported by the USDA NASS . The full report is available online through the Ag Decision Maker website. Obviously, risks of lower returns exist. M. farmdoc daily (12):106, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, July 19, 2022. Iowa's corn for grain yield is estimated at 178 bushels per acre. 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. endstream endobj startxref Phosphorus and potassium were charged, respectively, at $.39 and $.30 per pound. For farmers, that self-employment income is reported on their income tax Schedule F. Because many farmers didnt report income last year, PPP, administered by the Small Business Administration, hasnt been as useful as CFAP, Tidgren said. Average four-crop gross income per acre = approximately $790 per acre . corn and 59 bu. Yields are set at trend levels for 2023, with trends established through historical yields. 2023 Crop Budgets: Higher Costs and Lower Returns 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. But despite this volatility, corn farmers are still making some good profit from their corn farms, depending on the yield of that year. Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively.