university of illinois custom farming rates 2020

Operator and land returns for 2022 are projected at $313 per acre for corn and $439 per acre for soybeans. 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 . A return to 2014-2020 average prices seems quite possible. Report ID: Summary of costs for Field Operations, Havest Operations, Tractor and Forage Operations. for a look at their summary, including commentary by farm management experts Dale Lattz and Gary Schnitkey. ) Fortunately, ag economists at the University of Illinois keep up on all those numbers, and have an entire listing of costs for various field operations located on their Farmdoc website. ) Download the 2019 Custom Machine and Work Rate Estimates. Machinery costs are updated every two years, with the last update occurring in 2019. If you are figuring what it costs you to make hay on your farm, add mowing, raking . For a detailed statement, please see the University of Illinois Copyright Information and Policies here. Per hour costs are divided into overhead, fuel, and labor categories. Allowances for profit are not included. illinois custom farming rates 2020. Formulas are used to estimate each cost, and the purchase price enters those formulas. The purchase price is assumed to equal 85% of the list price of the tractor. I wish hay-making was that easy. 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 materials being applied. Reference to commercial products or trade names does not imply endorsement by MSU Extension or bias against those not mentioned. It contains averages of several different university survey results on rates paid for farm custom machinery work. Schnitkey, G. Revenue and Costs for Illinois Grain Crops, Actual for 2015 through 2020, Projected for 2021 and 2022. Illinois Farm Management Handbook. Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Briomass Crop Budget Tool Miscanthus & Switchgrass, Illinois Soil Productivity & Yield Utilities, Farmland LEasing Facts Sheets & Pricing Information, Machinery Cost Estimates: Field Operations, Machinery Cost Estimates: Forage Field Operations, 2022 Planting Decisions, Nitrogen Fertilizer Prices, and Corn and Soybean Prices, Department of Agricultural and Consumer Economics. College of Agricultural, Consumer & Environmental Sciences. The only category with a projected decline is interest costs. Lattz, D. and G. Schnitkey. In addition to the University of Minnesota, other university resources included to compile these results include Iowa State University, Kansas State University, University of Illinois, University of Wisconsin, Purdue University, University of Nebraska, Ohio State University and Oklahoma State. Machinery Cost Estimates: Field Operations. Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated October 11, 2021. But, of course, poor growing conditions could also occur in major production regions in 2022. Check out the MSU Fruit, Vegetable & Organic Horticulture Management Program! Informa Markets, a trading division of Informa PLC. 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. 61801, Communications and Information Technology, Our Impact in Agriculture and Natural Resources, Our Impact in Community & Economic Development, Our Impact in Illinois Nutrition Education Programs, Our Impact in Integrated Health Disparities, Backyard Beef: A guide to small-scale feeding, 2023 University of Illinois Board of Trustees. of P, and 50 lbs. However, the remaining portion of the growing season may impact yields. A return to 2014-2020 average prices will cause negative 2022 projected farmer returns if yields remain at or below trend yields. Publication Date: October 11, 2021. We provide machinery cost estimates which may be useful in setting custom rates. Lattz, D. and G. Schnitkey. Some parts of this site work best with JavaScript enabled. For soybeans, a return to the 2014-2020 average results in a -$18 per acre return, well below the $11 low set in 2000. . combine platform head from Case IH on display at 2023 Commodity Classic. Copies of the new guide can also be obtained from the Extension Crawford County Office at 608-326-0223. Overhead includes depreciation, interest, insurance and housing, and repairs. * Required field. Understanding the . For more information, visit https://extension.msu.edu. Factors impacting costs are illustrated for a 310 PTO horsepower tractor in Table 1, which shows per hour costs of operations from 2017, 2019, and 2021. The 4-H Name and Emblem have special protections from Congress, protected by code 18 USC 707. University of Missouri Extension is an equal opportunity/access/affirmative action/pro-disabled and veteran employer. Prices: Prices for 2021 and 2022 are based on forward bids and prices on Chicago Mercantile Exchange futures contracts. Farm Progress Show annually hosts more than 600 exhibitors displaying new farm equipment, tractors, combines and farm implements; seed and crop protection products; and many additional farm supplies and services. This publication shows estimated costs for combining, using grain carts, and hauling grain. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. A central question then is: How long will higher prices last? We comply with the Federal Trade Commission 1998 Childrens Online Privacy Protection Act (COPPA). As a result, a bale of hay sitting in the field costs $33.11. Labor costs per hour increased from $20.90 per hour in 2019 to $22.00 per hour in 2021 (see Table 1). Between 2017 and 2019, most per acre costs increased between 7 and 9 percent. Costs for most operations are higher in 2019 than in 2017. Download Full Report Contact Glennis McClure Extension Educator Farm and Ranch Management Analyst 402-472-0661 gmcclure3@unl.edu 365 0 obj <> endobj 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. At the 2014-2020 average price of $3.73 per bushel, farmer return would be -$145 per acre, well below any recent return. 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. Extension Professor, Agricultural Business and Policy. Information for those seeking or providing custom farm work. A $19 per hour rate was used in 2019 compared to a $20 per hour rate in 2021. If you are figuring what it costs you to make hay on your farm, add mowing, raking, and baling at 20.20 per bale (Machinery Cost Estimates, University of Illinois Extension, June 2015). Haul manure? This publication reports custom rates based on a statewide survey of 377 farmers, custom operators, farm managers, and landowners conducted in 2020. In this situation, the extremes may have unduly influenced the average reported. There is no assurance that the average rates reported in this guide will cover your costs for performing the service or that you will be able to hire a custom operator in your area for the rates shown. Table 1 contains estimates of revenues and costs for corn and soybeans grown on high productivity farmland in central Illinois. A worksheet on the final page of the fact sheet is provided for their own machinery costs to calculate cost of ownership and custom rates for various pieces of machinery. Most of the increases are due to increases in list prices of machines. Before entering into an agreement, discuss with the other party all the details of the specific job to be performed. This information is intended to give farmers looking to hire a custom operator or custom operators a starting point in negotiating a price for various services. %PDF-1.6 % 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. There are three years shown in Table 1. The $150 soybean projection compares to an average of $88 per acre from 2014 to 2020 (see Figure 1). Custom farming rates from around the U.S. March 23, 2021 08:00 AM. 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. From time to time, Prairie Farmer gets requests for the custom rate estimates on various field operations. For the best experience on our site, be sure to turn on Javascript in your browser. As farmers prepare to sharpen the pencil, I think it is important to look at what hay costs to produce. An $18 per hour rate was used in 2017 compared to $19 per hour rate in 2019. Machinery costs would have been higher had not interest rates been reduced from 2019 to 2021. ltimas Notcias. Estimated machinery costs often are used in setting custom rates where one individual performs a field operation for another individual. Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana . The rates reported in this guide summarize a statewide survey conducted online and by solicitations of University of Missouri Extension specialists in the spring of 2023. Rates change from year to year due to expense changes and the availability of custom operators. Part II of the custom rates survey included questions about fall operations such as harvesting, hauling grain and livestock, as well as miscellaneous custom work activities on the farm. These represent averages across a variety of farms with different situations. Go to Custom Rates The $413 per acre projection would be $42 per acre higher than the 2021 projection of $371 per acre. But it is still a very popular Extension guide. From 2017 to 2019, most of the estimated machinery costs went up. Substantial increases in list prices of machinery occurred between 2019 and 2021. 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. FAST aids users in performing financial analysis, assessing investment decisions, and evaluating the impacts of various management decisions. Labor time is assumed to be 1.1 times the tractor hour resulting in a 10% higher cost per tractor hour. Machinery cost estimates for agricultural uses have been updated for 2019. Lattz, D. and G. Schnitkey. The2019 Custom Machine and Work Rate Estimatesfact sheet from Michigan State University Extension is now available. for the complete table of custom rates, which also lists tractors of various sizes. More detail on the approaches used to estimate overhead costs are given in the Machinery Cost Estimates: Tractors (https://farmdoc.illinois.edu/handbook/tractor-costs) publication. In all cases, list prices for the equipment went up and ranged from 7.1% to 13.8%. Assuming a 1200lb round bale is 15% moisture, the nutrient value per bale is $12.91. Still, overhead costs increased from $122.90 per acre to $126.10 per acre. 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. MSU is an affirmative-action, equal-opportunity employer. Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Briomass Crop Budget Tool Miscanthus & Switchgrass, Illinois Soil Productivity & Yield Utilities, Farmland LEasing Facts Sheets & Pricing Information, https://farmdoc.illinois.edu/handbook/field-operations, https://farmdoc.illinois.edu/handbook/tractor-costs, https://farmdoc.illinois.edu/handbook/harvest-operations, https://farmdoc.illinois.edu/handbook/forage-operations, https://farmdoc.illinois.edu/handbook/machinery-cost-estimates-summary, Adverse Corn and Soybean Price Scenarios for 2020 and 2021, Department of Agricultural and Consumer Economics. That could occur next year if Brazil plants more soybean and corn acres, and weather conditions return to normal. Help improve lives, communities and economies throughout the state. These ad hoc payments are not scheduled in the future. The diesel fuel price was increased from $2.50 per gallon in 2019 to $2.75 per gallon in 2021. Both prices are significantly above the 2014 to 2020 average price of $3.73 per bushel. Issued in furtherance of MSU Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. More detail on the approaches used to estimate overhead costs are given in the Machinery Cost Estimates: Tractors publication. of K. However, it is important to calculate N losses at about 75%, thus only about 10 lbs. Machinery costs estimates are available in the management section of farmdoc in five publications: Costs are estimated in both 2017 and 2019 using an estimation approach that relies on formulas developed by the American Society of Agricultural Engineers (ASAE). FAST aids users in performing financial analysis, assessing investment decisions, and evaluating the impacts of various management decisions. Projections are made for 2021 and 2022. Quentin Tyler, Director, MSU Extension, East Lansing, MI 48824. The Average rate column indicates the average charge for all of the rates in that row. Urbana, hb```a``z B@16,N-,L s2.\ rkT2;t(am`m``P]=in?\5NP9Z^!SVzElIT?U=)"]vjVh Estimated machinery costs often are used in setting custom rates where one individual performs a field operation for another individual. Overhead includes depreciation, interest, insurance and housing, and repairs. endstream endobj startxref of N are returned to the soil. Crop Insurance Summary of Business Tool (Sheet), Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Post Application Coverage Endorsement Tool, Biomass Crop Budget Tool Miscanthus and Switchgrass, Illinois Soil Productivity and Yield Utilities, Illinois Crop Budgets and Historic Returns, Department of Agricultural and Consumer Economics. Go to Custom Rates, location icon102 Filley Hall Lincoln, NE 68583. Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, July 27, 2021. F)gpZACw}+{ % LxH1%0lT0~zgGV~D f ? Left and right arrows move across top level links and expand / close menus in sub levels. The cost category with the largest increase is fertilizer, with an increase of $40 per acre for corn and $18 per acre for soybeans. To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters. Thank you to those who provided information even if it was just for one activity. There may be fewer farmers using custom operators or fewer businesses conducting custom activities. Formulas are used to estimate each cost, and the purchase price enters into those formulas. The Median rate had an equal number of responses higher and lower. Labor costs per hour were increased from $19.80 per hour in 2017 to $20.90 per hour in 2019 (see Table 1). Machinery Cost Estimates: Summary. Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated October 11, 2021. However, the results presented here have been compared to custom rates guides in Iowa to see if our rates are in line with their rates. Farmdoc chart and PDF of historical Illinois land values from 1912 to the present. hbbd```b``IA$b"E``f0[~&E \"AX"0& A)DrtIn`o #PK? This publication includes budgets for northern, central, and southern Illinois, with central Illinois further broken down into estimates for 1) high-productivity farmland having a 2022 expected corn (soybean) yield of 220 (69) bushels per acre and 2) low productivity farmland with a 2022 expected corn (soybean) yield of 209 (62) bushels per acre. Up and Down arrows will open main level menus and toggle through sub tier links. We provide machinery cost estimates which may be helpful in setting custom rates. The diesel fuel price was increased from $2.25 per gallon in 2017 to $2.50 per gallon in 2019. This increase in the costs of inputs into custom activities suggest that custom rates should have increased over the past several years. The last time machinery costs were released on farmdoc was in 2017. Non-land costs for 2022 corn and soybean production are projected to be at all-time highs. Research Analyst, Agricultural Business and Policy Extension, Raymond E. Massey Use has a large impact on per hour costs. Note that ad hoc government payments, including Market Facilitation Program (MFP) and Coronavirus Food Assistance Program (CFAP) payments, were important sources of revenue. Labor. Many of them are involved in the Extension Income Tax Advisory Committee. The 2021 estimates appear in the 2021 tractor costs publications, while the 2017 and 2019 costs appear in the machinery costs 2017 and 2019 editions. Lattz, D. and G. Schnitkey. In determining the rates beyond 2020, custom operators and farm owners . The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. Check out the Michigan Manure Hauler Certification Program! A small number of responses combined with a large range of responses means that there is less confidence in those results. From time to time, Prairie Farmer gets requests for the custom rate estimates on various field operations. Unlike the farmdoc machinery cost estimates which represent actual economic cost of performing the harvest operation, the custom rate survey reports actual rates expected to be charged or paid in 2020. In 2018, 2019, and 2020, ad hoc Federal payments were important sources of revenue. 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 <. The site navigation utilizes arrow, enter, escape, and space bar key commands. An $18 per hour rate was used in 2017 compared to $19 per hour rate in 2019. illinois custom farming rates 2020 . University of Illinois UNL web framework and quality assurance provided by the, Apply to the University of NebraskaLincoln, Give to the University of NebraskaLincoln, Institute of Agriculture and Natural Resources, Rural Economic and Community Vitality Certificate, Center for Ag Profitability Farm and Ranch Management Resources, Industrial Organization of the Agri-Food System. From 2019 to 2021, most of the estimated machinery costs went up. View all agriculture and environment programs, Continuing Education for Health Professions, Living a Healthy Life with Chronic Conditions, Agricultural Business and Policy Extension, Exceed - Regional Economic and Entrepreneurial Development, Mid-America Trade Adjustment Assistance Center, Missouri Small Business Development Centers, Missouri Procurement Technical Assistance Centers, Veterinary Extension and Continuing Education, Missouri Council for Activity and Nutrition, equal opportunity/access/affirmative action/pro-disabled and veteran employer. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. The $677 per acre is higher than all previous non-land costs, surpassing the previous high of $617 per acre in 2014. For soybeans, a $13.60 per bushel price is used for 2021, and a $12.35 per bushel price is used for 2022. The site also contains a completed example of a farm return. Factors impacting costs are illustrated for a 310 PTO horsepower tractor with front wheel assist (per hour tractor costs are shown in the publication Machinery Costs Estimates: Tractor (https://farmdoc.illinois.edu/handbook/machinery-cost-estimates-summary). The report also lists hourly rates for tractor rentals as well as farm labor costs. per hour in 2019 (see Table 1). As in past years, this guide reports the average rate, and the low, mid and high rates reported by those providing responses. Costs include overhead (depreciation, interest, insurance, housing and repairs), fuel and labor. Select the Download this publication button to see the rate tables. Higher returns in 2021 likely will lead to debt retirement, causing lower debt levels in 2022 with steady interest rates. The Number reporting and Range of responses columns are important. Plant-based product fixes nitrogen for corn, Report provides rangeland carbon market insight, Kansas State University veterinarian shares tips to prepare cattle for summer, Commodity Classic offers look at latest in ag equipment, tech, http://www.farmdoc.uiuc.edu/manage/newsletters/fefo06_16/fefo06_16.html, http://www.farmdoc.uiuc.edu/manage/machinery/machinery_summary.html. Per hour costs are divided into overhead, fuel, and labor categories. 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. From time to time, Prairie Farmer gets requests for the custom rate estimates on various field operations. Guidelines are available here. IL For the best experience on our site, be sure to turn on Javascript in your browser. Year Applies: 2021. 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. The previous high in non-land costs was $378 per acre, occurring in 2014. 391 0 obj <>/Filter/FlateDecode/ID[<4E5C4DF6CD3D4045A6C9AA3FA884A65A>]/Index[365 42]/Info 364 0 R/Length 121/Prev 1011486/Root 366 0 R/Size 407/Type/XRef/W[1 3 1]>>stream To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464). The number of responses to many questions asked was too low to have statistical confidence in the results. 2019 Custom Machine and Work Rate Estimates, 1998 Childrens Online Privacy Protection Act (COPPA). 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. Custom rates in a given area may vary significantly according to timeliness, operator skill, field size and shape, crop conditions, the performance characteristics of the machine being used, the relationship between the custom operator and the person needing custom work done, competitive pressures, and economic circumstances of the custom operator. An additional amount for profit should be added to our cost estimates, as we have not added an amount for returns. @gW?#fb``e ` )4 Fewer people respond to this survey every time it is taken every three years. An additional amount for profit should be added to our cost estimates, as we have not added an amount for returns. All rights reserved. Fortunately, ag economists at the University of Illinois keep up on all those numbers, and have an entire listing of costs for various field operations located on their Farmdoc website. Calculate your own costs carefully before deciding the rate to charge or pay. 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. Mowing, raking, and baling. The 2022 corn price of $4.50 per bushel is $.77 per bushel higher than the 2014-2020 average of $3.73 per bushel. Subscribe to receive top agriculture news, Be informed daily with these free e-newsletters. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. Total costs were estimated at $164.30 per hour in 2017 (see Table 1. Demand factors also will impact prices, with primary importance being demand from China. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status. The new custom rate guide. The $12.35 price for soybeans is $2.44 higher than the 2014-2020 average of $9.91. Machinery cost estimates for 2019 have been released. College of Agricultural, Consumer, and Environmental Sciences, Department of Agricultural and Consumer Economics, College of Agricultural, Consumer, and Environmental Sciences. Yields for 2021 have been raised slightly from trends, as the growing season appears favorable across much of Illinois. Wellman farmer Clint Whetstine stands in front of destroyed pens and barns from tornado. These values are taken from the July 2021 version of Revenues and Costs for Illinois Grain Crops, a publication available on farmdoc showing actual returns from 2015 to 2020 and projections for 2021 and 2022. Rates in this guide reflect each respondents judgment of a normal job. Since 2000, when comparable returns have been compiled, the lowest return was -$50 per acre in 2015. Similarly, more acres of use will generally reduce per acre costs of a field implement. Table 2 shows estimated costs in 2017 and 2019 for several different tractors sizes, combining corn and soybeans, a field cultivator, and a conventional planter. 0 The 2020 Custom Rate Guide, release in April 2021 replaces the 2017 version. Learn more FAST (Farm Analysis Solution Tools) are a suite of Microsoft Excel spreadsheets designed to assist those in agriculture make better decisions via user-friendly computer programs. One expects supply responses in both Brazil and the U.S., as well as Russia, Ukraine, and Kazakhstan, to lead to lower commodity prices eventually. Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, July 27, 2021. Department of Agricultural and Consumer Economics Higher hours of use will lower per hour costs as depreciation and interest costs are spread over more hours. For me, that sequence is too often interrupted by cussing the weatherman, tedding, and more raking. Per acre costs did not necessarily go up as much depending on assumptions for field efficiency and acres covered. The values of P and K are accurate to what would be returned. The rates reported in the publication were the prevailing rates in the spring of 2020. Table 2 shows estimated costs in 2017 and 2019 for several different tractors sizes, combining corn and soybeans, a field cultivator, and a conventional planter. A return to average 2014-2020 prices will result in negative 2022 returns if yields are at or below trend. About This Report. Machinery Cost Estimates: Tractors. Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated October 11, 2021. In 2018, 2019, and 2020, ad hoc Federal payments were important sources of revenue. Lattz, D. and G. Schnitkey. Number 8860726. For each type of work, the average rate from the survey, the median, and the range are shown. Here, a look at cost estimates of field, forage and harvesting operations, plus per-hour tractor operating costs. Sign up to participate in the Custom Rates for Farm Services in Missouri survey and to stay informed of updates. A return to 2014-2020 average prices seems quite possible. The articles are written by Extension Specialists. For corn, a $5.25 per bushel price is used for 2021 and a $4.50 per bushel price for 2022. Fuel use on a 310 horsepower tractor is estimated at 13.6 gallons per hour. Diesel prices have increased by 38 percent in the last three years. )n6skjsic;9sizAlItFZ&\"i[Hz0^th |BJ!$0.Fc;z -`fLVacP;a A01|pZ AAs For a detailed statement, please see the University of Illinois Copyright Information and Policies here. Every ton of hay contains approximately 40 lbs. List price and interest rate increases resulted in an increased in overhead costs from $110.90 in 2017 to $122.90 in 2019 (see Table 1).
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