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U OF ILLINOIS ECONOMISTS REVISE 2020 AND 2021 CROP BUDGETS, INDICATE HIGHER RETURNS
Jan. 28, 2021
Source: Gary Schnitkey, Krista Swanson, and Nick Paulson, Department of Agricultural and Consumer Economics, University of Illinois
To view the entire report, click here.
Publications on farmdoc giving 2020 and 2021 returns for Illinois grain crops have been revised since their last release in October 2020. Three changes have been made: 1) corn and soybean prices for 2020 and 2021 have been increased, 2) additional Federal-aid resulting from COVID-19 has been included, and 3) many non-land costs for 2021 have been increased. The 2021 Illinois Crop Budgets are available at this link. Historical costs are included in a farmdoc publication called Revenue and Costs for Illinois Grain Crops which is available from this link.
2020 Returns
Table 1 shows revenue and costs for crops grown in central Illinois on high-productivity farmland. Returns are shown for corn and soybeans for three years: 2019, 2020, and 2021. The 2019 values are summaries from farms enrolled in Illinois Farm Business Farm Management (FBFM). Historic returns back to 2014 for the central-high region - and for northern, central-low, and Southern Illinois regions - are available in the publication entitled Revenues and Costs for Illinois Grain Crops (link). Results for 2020 are projections as FBFM has not produced summaries for 2020. Similarly, 2021 values are projections.
For 2020, the projected corn yield is 228 bushels per acre, the corn price is $4.25 per bushel, resulting in $969 per acre in crop revenue. This $4.25 corn price is $.25 per bushel higher than the price used in the October 2020 Revenue and Costs for Illinois Grain Crops publication. The higher price reflects the large increases in corn prices that have been occurring in recent months. That price will vary across farms depending on the timing of marketing. Corn revenue also includes $68 of other ad hoc Federal payments related to the Coronavirus Food Assistance Program (CFAP). The $68 includes payments for:
1. The second round of CFAP, which were $.23 per bushel times the actual production History yield (210 bushels per acre) in Figure 1.
2. The third round of CFAP of $20 per acre authorized in December's Consolidation Appropriation Act. These payments have not been received but are authorized.
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