Urbana, Illinois
April 11, 2007
Total costs to produce corn in
Illinois in 2006 were $488 per acre, a 6.5 percent increase over
2005, according to a recent
University of Illinois (U of I) Extension study. The same
report showed costs for soybeans increased $24 per acre over the
same period.
"Broken down by regions, costs were lower in southern Illinois
primarily because of lower land costs," said Dale Lattz, U of I
Extension farm management specialist who prepared "Cost to
Produce Corn and Soybeans in Illinois--2006," which is
available (http://www.farmdoc.uiuc.edu/manage/newsletters/fefo07_05/fefo07_05.html)
on Extension's farmdoc website.
"The total of all economic costs per bushel in the different
sections of the state ranged from $2.74 to $3.11 for corn and
from $6.94 to $7.30 for soybeans. Variations in this cost were
related to weather, yields, and land quality."
The report was prepared with data provided by the Illinois Farm
Business Farm Management (FBFM) Association, which consists of
5,800-plus farmers and 60 professional field staff. The state is
divided into four regions for the study: northern, central with
"high" soil ratings, central with "low" soil ratings, and
southern.
"The sample farms had no livestock and had more than 500 acres
of productive and nearly level soils in each area of the state,"
said Lattz.
In 2006, the total of all economic costs per acre for growing
corn in Illinois averaged $502 in the northern section, $500 in
the central "high" section, $472 in the central "low" section,
and $448 in southern Illinois. Soybean costs per acre were $387,
$386, $361, and $341, respectively.
"Costs per bushel of corn in 2006 as compared to 2005 were lower
for all geographic areas of the state except the southern
region," said Lattz. "Costs per bushel were lower due to higher
corn yields.
"The average corn yield in 2006 was 38 bushels per acre higher
in northern Illinois than in 2005, 20 to 25 bushels higher in
central Illinois, and six bushels per acre higher in southern
Illinois."
However, costs per acre were higher in all the different
geographic sections compared to 2005.
"Across the state, total costs per acre to produce corn
increased 5 to 8 percent," said Lattz. "A number of costs
increased, including fertilizer, seed, fuel, insurance, and land
costs.
"The non-land interest cost per acre increased the most due to
higher interest rates and higher grain inventory values."
Production costs per bushel of soybeans in 2006 increased in all
areas of the state except for the northern region as compared to
2005.
"Costs per bushel for soybeans increased mainly due to higher
per acre costs," he explained. "Soybean yields were the same or
slightly higher than the year before except for the southern
region. Soybean yields ranged from one bushel per acre lower to
four bushels per acre higher in 2006 as compared to 2005.
"Increases in costs per bushel ranged from 12 cents in central
Illinois with the lower rated soils to 71 cents in southern
Illinois. Costs per bushel were five cents less in northern
Illinois."
Like corn, total costs per acre to produce soybeans increased in
all geographic regions of the state compared to 2005. Costs
increased $27 per acre in northern Illinois, $19 per acre in
central "high" soils, $20 per acre in central "low" soils, and
$28 per acre in southern Illinois.
"Fertilizer, fuel, and interest were some of the costs that
increased," said Lattz. "Average soybean yields in the different
areas ranged from one to six bushels per acre higher than the
four-year average from 2003 to 2006." |
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