Schnitkey, G. Revenue and Costs for Illinois Grain Crops, Actual for 2015 through 2020, Projected for 2021 and 2022. Illinois Farm Management Handbook. The number of responses to many questions asked was too low to have statistical confidence in the results. At the 2014-2020 average price of $3.73 per bushel, farmer return would be -$145 per acre, well below any recent return. As a result, a bale of hay sitting in the field costs $33.11. The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464). Reference to commercial products or trade names does not imply endorsement by MSU Extension or bias against those not mentioned. Cost Management: Harvest Operations - farmdoc daily Costs for most operations are higher in 2019 than in 2017. Machinery repairs are projected to increase 10%. Drew Kientzy As farmers prepare to sharpen the pencil, I think it is important to look at what hay costs to produce. University of Missouri Extension is an equal opportunity/access/affirmative action/pro-disabled and veteran employer. Overhead includes depreciation, interest, insurance and housing, and repairs. Self-propelled at $4.40 per acre Pull-type at $3.90 per acre Anhydrous ammonia at $16.50 per acre Liquid fertilizer applicator at $23.50 per acre Other costs Also consider fuel and labor costs: Fuel. Download the 2019 Custom Machine and Work Rate Estimates. Combined with yields at or above trend in the U.S., those conditions would likely lead to lower corn and soybean prices in 2022. The July 2021 version of the publication entitled Revenues and Costs for Illinois Grain Crops and the 2022 Illinois Crop Budgets provides more detail on these estimates. About This Report. For soybeans, a return to the 2014-2020 average results in a -$18 per acre return, well below the $11 low set in 2000. These rates, except where noted, include the implement and tractor if required, all variable machinery costs such as fuel, oil, lube, twine, etc., and the labor for the operation. Machinery costs are updated every two years, with the last update occurring in 2019. In all cases, estimated costs went up and ranged from 2% to 19%. 2022 Crop Budgets Contain Higher Costs - farmdoc daily Twenty percent of the respondents perform custom work, 14% hire work done, 59% indicated doing both, 6% indicated doing neither, and 1% did not indicate whether they perform or hire custom work. This fact sheet is intended to be a guide and therefore all producers are encouraged to develop their own custom rates based on tradition or usual rates set in the community. Machinery Cost Estimates Summary. It contains averages of several different university survey results on rates paid for farm custom machinery work. %%EOF Allowances for profit are not included. Formulas are used to estimate each cost, and the purchase price enters those formulas. Illinois Custom Farm Rates 2020 Rentals Schnitkey, G. Crop Budgets, Illinois, 2022. Illinois Farm Management Handbook. A return to 2014-2020 average prices seems quite possible. PDF Ohio State University Extension Agriculture & Natural Resources * Required field. Mowing, raking, and baling. This increase in the costs of inputs into custom activities suggest that custom rates should have increased over the past several years. More detail on the approaches used to estimate overhead costs are given in the Machinery Cost Estimates: Tractors publication. Labor time is assumed to be 1.1 times the tractor hour resulting in a 10% higher cost per tractor hour. ltimas Notcias. MSU is an affirmative-action, equal-opportunity employer, committed to achieving excellence through a diverse workforce and inclusive culture that encourages all people to reach their full potential. Overhead includes depreciation, interest, insurance and housing, and repairs. Enter and space open menus and escape closes them as well. Making hay is a consuming summer-time task. College of Agricultural, Consumer & Environmental Sciences. Both prices are significantly above the 2014 to 2020 average price of $3.73 per bushel. Department of Agricultural and Consumer Economics The University of Minnesota provides total machine cost per acre, machine rates per hour and estimates of acres per hour fuel usage for many of the machines. Higher costs have led to a situation were higher prices and above trend yields are needed for profitability. Per acre costs did not necessarily go up as much depending on assumptions for field efficiency and acres covered. Illinois Farm Management Handbook. Check out the Michigan Manure Hauler Certification Program! These estimates are useful for determining custom rates and for analyzing machinery costs on farms. Without a return of these ad hoc programs, returns in 2021 will be below those experienced in 2018 through 2020 if prices return to 2014-2020 prices without having yields well above trend. illinois custom farming rates 2020. Note that ad hoc government payments, including Market Facilitation Program (MFP) and Coronavirus Food Assistance Program (CFAP) payments, were important sources of revenue. %PDF-1.6 % The2019 Custom Machine and Work Rate Estimatesfact sheet from Michigan State University Extension is now available. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. As in past years, this guide reports the average rate, and the low, mid and high rates reported by those providing responses. These rates, except where noted, include the implement and tractor if required, all variable machinery costs such as fuel, oil, lube, twine, etc., and the labor for the operation. Rentals Details: Web(47) 3433-2020 /iot.joinville. This publication reports custom rates based on a statewide survey of 377 farmers, custom operators, farm managers, and landowners conducted in 2020. Labor costs per hour were increased from $19.80 per hour in 2017 to $20.90 per hour in 2019 (see Table 1). This publication reports custom rates based on a statewide survey of 377 farmers, custom operators, farm managers, and landowners conducted in 2020. Machinery Cost Estimates for 2021 - farmdoc daily Machinery cost estimates for 2021 have been released and are available on the farmdoc website (see Management section of farmdoc). Per hour costs are divided into overhead, fuel, and labor categories. Guidelines are available here. Table 2 shows estimated costs in 2019 and 2021 for several different tractor sizes, combining corn and soybeans, a chisel plow, and a conventional planter. hbbd```b``IA$b"E``f0[~&E \"AX"0& A)DrtIn`o #PK? In determining the rates beyond 2020, custom operators and farm owners . The 2020 Nebraska Farm Custom Rates Report is now available at farm.unl.edu/customrates. Cash Rents: Table 1 includes an estimate of 2022 cash rent at $289 per acre, up $10 per acre from the 2021 projected level of $279 per acre. Field Operations - farmdoc Lattz, D. and G. Schnitkey. When few responses are averaged, a single response can move the average a lot. Obviously, much can change between now and delivery in both years. endstream endobj 366 0 obj <>/Metadata 166 0 R/OCProperties<>/OCGs[393 0 R]>>/Outlines 250 0 R/Pages 358 0 R/StructTreeRoot 262 0 R/Type/Catalog>> endobj 367 0 obj <. By Mike Rankin. The $12.35 price for soybeans is $2.44 higher than the 2014-2020 average of $9.91. But, of course, poor growing conditions could also occur in major production regions in 2022. Learn more. Lattz, D. and G. Schnitkey. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. These ad hoc payments are not scheduled in the future. @gW?#fb``e ` )4 0 Formulas are used to estimate each cost, and the purchase price enters into those formulas. Total non-land costs for corn are projected at $677 per acre, up by $70 per acre from the 2021 level of $607 per acre. We asked farmers, agribusiness firms and land improvement contractors to provide the rates they were charging or paying in 2022 for custom services, excluding the cost of . Lattz, D. and G. Schnitkey. Between 2017 and 2019, the list price on a 310 HP tractor increased by by 7.6% from $381,439 in 2017 to $410,256 in 2019. Fuel costs are based on $2.50 per gallon for diesel fuel. Click here (http://www.farmdoc.uiuc.edu/manage/machinery/machinery_summary.html) for the complete table of custom rates, which also lists tractors of various sizes. for the complete table of custom rates, which also lists tractors of various sizes. The 2022 corn price of $4.50 per bushel is $.77 per bushel higher than the 2014-2020 average of $3.73 per bushel. Labor time is assumed to be 1.1 times the tractor hour resulting in a 10% higher cost per tractor hour. However, the results presented here have been compared to custom rates guides in Iowa to see if our rates are in line with their rates.