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U OF ILLINOIS ECONOMISTS REVISE CORN, SOYBEAN BUDGETS DUE TO COVID-19 PANDEMIC, SHOW LOSSES
Apr. 13, 2020
Source: Univ of Illinois news release
To view the complete report, click here.
Illinois crop budgets for 2020 have been revised with lower corn and soybean prices: $3.30 for corn and $8.30 for soybeans. Given trend yields, these prices will result in negative returns. At this point, projected corn returns are lower than projected soybean returns, bringing into question previously planned shifts in acres from soybeans to corn in Illinois.
Returns could be better than currently projected in 2020 budgets because of a combination of 1) higher yields, 2) higher prices, or 3) government aid similar to the last two years of Market Facilitation Program (MFP) payments. The $3.30 corn price and $8.30 soybean price are based on current cash bids for the 2020 crop and are not necessarily the worst-case scenario for returns in 2020.
2020 Budgets for High-Productivity Farmland in Central Illinois
Table 1 shows 2020 budgets for high-productivity central Illinois farmland, along with actual results from 2018 and 2019. Actual results are summarized from farms enrolled in Illinois Farm Business Farm Management (FBFM). Budgets also have been prepared for northern Illinois, lower-productivity farmland in central Illinois, and southern Illinois. These 2020 budgets, along with actual results for 2018 and 2019, are available in the management section of farmdoc: https://farmdoc.illinois.edu/management#handbook-crop-budgets.
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