Illinois Corn, Soybean Costs
By Aces Staff
Apr 30, 2003
April 30, 2003
URBANA—Total costs to produce corn per acre in Illinois dropped an average of 5 percent from 2001 to 2002 and total per acre costs for soybeans also dropped over the same period, according to a University of Illinois Extension study.
“Total costs to produce corn for all combined areas of the state were $401 per acre in 2002,” said Dale Lattz, U of I Extension farm management specialist who wrote the report, “Costs to Produce Corn and Soybeans in Illinois—2002,” based on data from the Illinois Farm Business Farm Management Association (FBFM) record keeping project. “This figure represents a 5 percent decrease in one year.
“Total costs per acre to produce soybeans also decreased, from $338 per acre in 2001 to $326 per acre in 2002.”
Driving the decreases, Lattz said, were reductions in fertilizer, nonland interest charge, and land costs.
“For corn, total costs per acre were the lowest since 1995 when they were $395 per acre,” said Lattz. “Total costs per bushel were the highest since 1997. Total costs per acre for soybeans were the lowest since 1995.”
The entire report is available online at: http://www.farmdoc.uiuc.edu/manage/newsletters/fefo03_08/fefo03_08.html .
Production costs varied among the state’s regions and soil types. Total per acre costs for corn averaged $411 in the northern section and $416 in the central section for areas with high soil ratings. Costs were $391 per acre in the central section for farmland with low soil ratings and $350 per acre in the southern section. Soybean costs in the high soil areas of northern and central Illinois were $337 and $341, respectively. Costs in the low soil areas of central Illinois were $312 per acre and $275 per acre in southern Illinois.
“Costs were lower in the southern part of Illinois primarily because of lower land costs,” said Lattz. “The total of all economic costs per bushel in the different sections of the state ranged from $2.59 to $3.61 for corn and from $6.24 to $8.09 for soybeans.
“Variations in this cost were related to weather, yields, and land quality. Southern Illinois had the highest costs per bushel to produce corn and soybeans because of below average yields caused by last summer’s dry weather.”
Farms located in the 22 counties north and northwest of the Illinois River constitute the northern region. Farms from 36 counties below a line from about Mattoon to Alton are in the sample for southern Illinois. The remaining 44 counties make up central Illinois.