Collected Publications for crop economics • farmdoc daily

Weekly Farm Economics

What Could Change the 2019 Corn and Soybean Return Outlook?

October 30, 2018
Gary Schnitkey and Krista Swanson

The outlook for 2019 corn and soybean returns is lower than returns in recent years. However, higher returns are possible under other economic and agronomic situations than those used to…

Read This Article

Flexible Cash Lease Comparisons

October 26, 2018
Michael Langemeier

A recent article used a case farm in west central Indiana to illustrate net returns to land derived from crop share, fixed cash rent, and flexible cash lease arrangements. This…

Read This Article

Integrated Pest Management: What Are Economic Thresholds, and How Are They Developed?

October 24, 2018
Nick Seiter

An insect control action (such as spraying an insecticide or planting a corn hybrid that incorporates a Bt trait) is only justified once the population of an insect pest reaches…

Read This Article

Comparing Net Returns for Alternative Leasing Arrangements

October 18, 2018
Michael Langemeier

Obtaining control of land through leasing has a long history in the United States. Leases on agricultural land are strongly influenced by local custom and tradition. However, in most areas,…

Read This Article

Weekly Farm Economics

Fertilizer Prices Higher for 2019 Crop

September 25, 2018
Gary Schnitkey

August and September fertilizer prices confirm expectations of rising fertilizer costs for 2019. So far, anhydrous ammonia prices are close to $80 per ton higher for 2019 production as compared…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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…

Read This Article

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,…

Read This Article

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,…

Read This Article

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…

Read This Article