Collected Publications for crop economics • farmdoc daily

Weekly Farm Economics

2019 Crop Budgets Suggest Dismal Corn and Soybean Returns

September 18, 2018
Gary Schnitkey and Krista Swanson

Due to lower soybean prices and higher costs, budgets suggest returns will be very low for corn and soybeans in 2019. Conserving cash, cutting investments, reducing costs, and renegotiating cash…

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Weekly Farm Economics

Closing in on 2018 Gross Revenue Estimates for Corn and Soybeans

September 11, 2018
Gary Schnitkey

Recently released yield estimates and the announcement of Market Facilitation Program details allows for more accurate estimates of 2018 gross revenue for corn and soybeans. Gross revenue in 2018 could…

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Weekly Farm Economics

Exceptional 2018 Corn and Soybean Yields and Budgeting for 2019

September 5, 2018
Gary Schnitkey

Illinois again will have exceptional yields in 2018, with the National Agricultural Statistical Service (NASS) projecting record high yields for both corn and soybeans. Recent high yields may give overconfidence…

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Managing the Economics of Planting Cereal Rye as a Cover Crop

August 14, 2018
Gary Schnitkey, Krista Swanson, Jonathan Coppess and Shalamar Armstrong

Many farmers begin experimenting with cover crops by planting cereal rye into corn stalks with the following crop being soybeans. This article discusses some of the economic implications of adopting…

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Weekly Farm Economics

Has the Era of Decreasing Per Acre Corn Costs Come to an End?

June 21, 2018
Gary Schnitkey

Since 2014, non-land costs of producing corn on high-productivity farmland in central Illinois declined from $617 per acre in 2014 to $569 per acre in 2017, a decrease of $48…

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Weekly Farm Economics

Historic Fertilizer, Seed, and Chemical Costs with 2019 Projections

June 5, 2018
Gary Schnitkey

Fertilizer, seed, and chemical costs represent a sizable portion of the total costs of producing corn. In this article, costs for these three inputs are reported for the years from…

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Weekly Farm Economics

What do $3.80 Corn and $10 Soybean Midpoints Mean for 2018 Crop Revenues?

May 22, 2018
Gary Schnitkey

The World Agriculture Supply and Demand Estimate (WASDE) report contained its first estimates of 2018/2019 supply and use. Midpoints of their market year average (MYA) prices ranges are $3.80 per…

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Weekly Farm Economics

Have Soybean Yields Increased Relative to Corn Yields in Recent Years?

May 1, 2018
Gary Schnitkey

Soybean yields across much of the Corn Belt have been exceptionally high in recent years, leading to the question of whether soybean yields are increasing relative to corn yields. This…

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Projected Corn and Soybean Breakeven Prices

April 13, 2018
Michael Langemeier

Breakeven prices are used to examine the relative profitability and competitiveness of a farm's enterprises and when developing marketing plans. What costs should be included in the computation of breakeven…

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Weekly Farm Economics

2018 Acreage Decisions: Steady as She Goes in Rough Waters

April 10, 2018
Gary Schnitkey

The recent release of the Prospective Planting report and the threat of a 25% tariff on U.S. soybean imports to China has resulted in swings in corn and soybean futures…

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Nitrogen Prices, Rates Cuts, and 2018 Fertilizer Costs

April 3, 2018
Gary Schnitkey

In recent months, nitrogen fertilizer prices have increased, reaching roughly the same levels as in 2017. To achieve lower nitrogen fertilizer costs in 2018 than in 2017, many farmers will…

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Gardner Policy Series

U.S. Field Crop Income – Return to Normalcy

March 21, 2018
Carl Zulauf , Gary Schnitkey, Jonathan Coppess and Nick Paulson

The economic state of U.S. crop farming has drawn considerable attention in recent years. This article uses U.S. Department of Agriculture (USDA) cost of production data to compare the ratio…

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Weekly Farm Economics

Exceptional Corn and Soybean Yields in 2017

March 20, 2018
Gary Schnitkey

Both corn and soybean yields were exceptional in 2017, with the national corn yield being the highest ever and the national soybean yield being the second highest. Recently released county…

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IFES 2017: Crop Economics: Continuing Need to Cut Costs

January 25, 2018
Gary Schnitkey

Corn and soybean prices continue to be near the mid-$3.00 per bushel range for corn and the mid-$9.00 per bushel range for soybeans. At those price levels, net income will…

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Weekly Farm Economics

Switches in Corn, Soybeans, and Wheat Acres in the U.S. and Illinois

December 12, 2017
Gary Schnitkey

Since 2012, acres in the U.S. have been shifting out of corn and into soybeans, likely as a result of higher returns for soybeans than for corn. The longer termed…

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Weekly Farm Economics

Nitrogen Fertilizer Prices and Costs Lower for 2018

November 14, 2017
Gary Schnitkey

Nitrogen fertilizer prices are averaging lower now than in any time since September 2008. These lower prices could translate into roughly a $10 per acre saving in nitrogen fertilizer for…

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Weekly Farm Economics

A Narrowing of the Gap on Corn and Soybean Crop Revenue

October 31, 2017
Gary Schnitkey

On average in Illinois, soybeans have been more profitable than corn since 2014, an unusual situation given that Illinois is in the heart of the Corn Belt. Both costs and…

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Gardner Policy Series

Comparing Economies of Size: Milk vs. Field Crops

August 17, 2017
Carl Zulauf

The farmdoc daily article of May 25, 2017 explored the substantial economies of size in producing milk and its relevance to U.S. dairy policy. A follow-on question of interest is,…

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Weekly Farm Economics

Seed Costs for Corn in 2017 and 2018

July 18, 2017
Gary Schnitkey

Per acre seed costs for corn likely will not significantly decrease until corn acres decline. Seed companies have little incentive to reduce prices under stable or growing acreages. In 2017,…

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Weekly Farm Economics

Fertilizer Costs in 2017 and 2018

July 11, 2017
Gary Schnitkey

Fertilizer prices have fallen in recent years, leading to lower fertilizer costs, major costs of producing corn and soybeans that have declined the most since the commodity price declines in…

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2018 Planning Prices for Corn and Soybeans

July 6, 2017
Gary Schnitkey

As fall approaches, the time nears for determining 2018 cash rents and making initial acreage allocation decisions between corn and soybeans. Price expectations for 2018 will play a role in…

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Weekly Farm Economics

Late Planting in 2017

May 9, 2017
Gary Schnitkey

Recent wet, cool weather has raised concerns about delays in planting, which could then lead to a switch in planting from corn to soybeans. From an economics standpoint, the decision…

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Weekly Farm Economics

Areas of Above and Below Trend Yields in the Corn-Belt: These Areas Will Change

May 2, 2017
Gary Schnitkey

Since 2012, many areas in the greater Midwest had county corn and soybean yields that have exceeded trend yields by a large margin. These areas include much of Illinois, southern…

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Weekly Farm Economics

Acre Changes in Crops from 1991 to 2016

April 25, 2017
Gary Schnitkey

Over the past 25 years, there have been shifts in crops planted in the United States. Overall, acres in feed grain crops decreased while acres in oilseed crops increased. Feed…

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Weekly Farm Economics

2017 Break-even Prices for Corn and Soybeans to have the Same Profitability: Revisited

April 4, 2017
Gary Schnitkey

Corn and soybean returns are revisited because of recent changes in soybean prices and the release of USDA reports at the end of March. Overall, soybeans are still projected to…

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