average profit per acre of corn in iowa

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. Dec 9, 2014. Many farmers purchased fertilizer for 2022 before much of the price increase in fall and early winter of 2021. %%EOF 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. County yields ranged from 37.9 bushels per acre in Decatur County to 69.1 bushels per acre in Scott County. This early in the season, Johnsons estimates are estimates, of course. Whole Farm > Costs & Returns > Record Summaries. 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. Required fields are marked *. Return on assets - net farm income, plus interest expense, minus value of operator and family labor, divided by total farm assets owned. 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 Authors Television Broadcast average profit per acre of corn in iowa Iowa State University Extension and Outreach, Managing farm costs key to profitability in 2021. Schnitkey, G. and K. Swanson. stream x=8z98[; @&bg6;bfV_de{HEv:r'@;EbIXoo.(~? As of Friday, $130 billion hadnt been spent, Tidgren said. History suggests that low prices would not lead quickly to lower costs, as costs typically exhibit lags in adjustments. 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. 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. 10 Most Profitable Specialty Crops to Grow Lavender. endobj Central Illinois with high-productivity farmland, Central Illinois with low-productivity farmland, and. Woody ornamentals. The 2023 farmer return is projected to be close to the average from 2013 to 2019 when the return averaged $29 per acre. Willows . The rest of expected federal payments will be from CFAP, at about $30 an acre. It is important to mention that although there are clear profits and losses, this does not sum up the complete profitability of a corn or soybean farmer. These returns are for a typical 50% corn and 50% soybean rotation in central Illinois. How many farmers know what their inputs are, let alone their costs per acre or per bushel? So any change requires processor buy-in. You list seed costs as the same for corn after corn rotation as corn after soybeans. First, fertilizer and lime costs include volume and early purchase discounts. This . Adding miscellaneous income (straw, crop insurance, etc.) While fertilizer prices have declined recently (see farmdoc daily, July 19, 2022), fertilizer prices are still much higher than last year. hbbd```b``"_HRD2I V&%T$/"9;@h$-"%H`f3N$_ j6@ d-z Ways to Make Money Off Your Land Almost Immediately Rent plots to groups looking to build a community garden. The Guide also reports expected variable costs of $403 per acre. 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. The break-even price to cover total costs less other revenue for soybean in 2022 is projected at $11.06 per bushel. 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. The 2022 projected costs exceed 2021 cost of $652 per acre by $124 per acre. A bit of luck here. It will take nearly all of that to reach Johnsons projected net return to the farmer of $86.60 an acre for corn. The most profitable farm made $275 per acre while the least profitable lost $222 per acre. Gross income = $950 / acre 4. In northern Illinois, cash rents are projected to increase from $296 per acre up to $301 per acre. Contact a specialist. of Science and Technology Even with those, the net return on beans is projected at a negative $15 an 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. Iowa's corn for grain yield is estimated at 178 bushels per acre. 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.. Costs are projected to increase in 2023 from 2022 levels. Email: askusda@usda.gov The average corn yield per acre has doubled in the last forty years. These farm record data are presented in the accompanying "pdf" file that you can access by clicking here or on the icon above. Copyright 1995-document.write(new Date().getFullYear()) State Averages Total costs to produce corn for all combined areas of the state were $868 per acre. 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. CFAP isnt the only corona virus-related program that farmers might be able to use. This is $20 per acre lower than 2019. endstream endobj startxref By accessing or using the Service you agree to be bound by these Terms. For related content and insights from industry experts, sign up for Successful Farming newsletters. 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 "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. In recent years, corn profits have been significantly more volatile than years past. Projected prices are $5.30 per bushel for corn and $12.70 for soybeans, near current 2023 fall bids. If you're making 1000/acre +, you need to keep very quiet about it, otherwise peeps will jump on the bandwagon and wreck the job for everyone, as has happened with organic veg/free range chickens etc. 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. Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. 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. Management return - accrual net farm income less 4% interest on value of equity (net worth), and wages for operator and family labor. The publication also includes budgets for alfalfa hay establishment with an oat companion crop and by direct seeding. Want more news on this topic? For northern Illinois, the break-even corn price is $5.34 per bushel on cash rented land. . From 2014 to 2018, farmer returns averaged -$30 per acre for corn and $64 per acre for soybeans. While advancements in technology make producing corn more efficient, there are still commodity markets which must be contended with. 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. Return on equity - net farm income minus value of operator and family labor, divided by net worth. 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. 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. However, it is great that you are reviewing the budget line by line and adjusting our state average estimates to reflect the specifics of your operation. How can I make money with 10 acres? The first round of 2023 Illinois Crop Budgets released by the University of Illinois show a clear trend of higher costs and lower returns. 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. A string of great crops from 2010-2013. (Source: USDA, Jan. 2021) 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. Price. Variable costs: Fuel, fertilizer, seed, irrigat. Corn yields were maximized near a final stand of 33,000 plants per acre and were not reduced as plant population increased to 44,000 plants per acre. 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. To answer you have to make a lot of assumptions. Table 1 provides corn and soybean budgets for four regions of Illinois: More detailed budgets are available here in the management section of farmdoc. 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. Represents a return to unpaid labor, net worth (equity), management, and profit. Yield = 190 bushels per acre on average (US Midwest) 3. Over time, corn yields have increased an average of 2.0 bushels per acre, while soybean yields have increased by .5 bushels per acre. #18. 2 0 obj There is a lot of corn grown each year in the United States. <> If YES, here is an analysis of the income & profit margin corn farmers make per acre. What is the average bushel of corn per acre? The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. 7 . When breaking down the costs of production, the ISU update stated that, "For corn, land represents . 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 1995-document.write(new Date().getFullYear()) However, vegetable processors choose the hybrid, provide seed of that hybrid, and set the population size. Your email address will not be published. More than 200 counties across the Corn Belt had county average rental rates above $200 per acre, with . 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. All records were kept on the accrual, or inventory, basis. We're still protecting positive returns for 2023 but there are risks. average profit per acre of corn in iowa. 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. Yields are set at trend levels for 2023, with trends established through historical yields. Seed and fertilizers amount to 44% of variable costs. 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. . For 2023, much higher prices than average historical prices are needed to maintain some profitability. For 2020, the state of Illinois had an average soybean yield of 60 bushels per acre and an average corn yield of 192 bushels per acre. corn yields are coming in anywhere from 130 bushels per acre 776 Math Specialists. In an average year, Iowa produces more corn than most countries. Only farms with sales of $100,000 or more were counted in making the weighting. Current futures prices seem to indicate that corn and soybean prices might average $4.45 and $11.40 per bushel in 2021/22, respectively. 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. 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 . With an expected harvest price of $3.65, the anticipated market revenue is $657 per acre. Do you want to know how much money corn farming businesses make yearly? Your email address will not be published. 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)? The state average soybean yield was 58.5 bushels per acre, down 4.5 bushels from 63.0 bushels per acre last year. 5598 0 obj <>stream Iowa produced almost 500 times more corn than Utah, which ranks #41 in US corn production by state. For a detailed statement, please see the University of Illinois Copyright Information and Policies here. The United States grew 1,304,003,000 bushels (i.e. 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 key points to remember when growing popcorn is to make sure it doesn't cross pollinate with other corn you may be growing. On rented farms, only operator income and expenses were recorded. The breakeven price for corn at a yield level of 200 bushels per acre is $3.23 per bushel. 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. 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. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. From 2000 to 2012, farmer returns averaged $148 per acre for corn and $95 per acre for soybeans. corn and 59 bu. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily.