Grainnet

University of Illinois Study: Production Costs for Corn and Soybeans Rise; Corn Yields to Be Higher

Urbana, IL—Costs to produce a bushel of corn were generally higher in 2007 than in 2006, and soybean costs were up in all areas of the state compared to 2006, according to a new University of Illinois Extension study.

"Costs per bushel of corn in 2007 as compared to 2006 were higher for all geographic areas of the state except for the central region with the higher rated soils," said Dale Lattz, U of I Extension farm management specialist.

"Costs per bushel were higher due to higher per- acre costs.

"Costs per bushel were two cents lower in central Illinois with the higher-rated soils, four cents higher in central Illinois with the lower-rated soils, 13 cents higher in northern Illinois, and 23 cents higher in southern Illinois."

For soybean costs, the rise was also due mainly to higher per acre costs.

"Costs increased $54 per acre in northern Illinois, $41 per acre in central Illinois with the higher-rated soils, $33 in central Illinois with lower-rated soils, and $25 per acre in southern Illinois," said Lattz.

For both corn and soybeans in 2007, per-acre costs were bumped up by increases in fertilizer, fuel, repairs, insurance, and land costs.

"Total costs to produce corn for all combined areas of the state were $542 per acre," said Lattz.

"This figure increased 11 percent over the 2006 figure.

"Variable costs increased $22 per acre, or 10 percent.

"Other non-land costs increased $21 per acre, and land costs increased $11 per acre.

"Total cost per acre to produce soybeans increased from $375 per acre in 2006 to $418 per acre in 2007.

"Generally speaking, the same expenses that drove up corn costs also affected soybean production.

The figures used for the report were based on records kept by farmers enrolled in the Illinois Farm Business Farm Management Association (FBFM).

The samples included only farms that had no livestock and had more than 500 acres of productive and nearly level soils in each area of the state.

Lattz's report also revealed that the average corn yield in 2007 was 13 bushels per acre higher than 2006 in northern Illinois, 17 to 21 bushels higher in central Illinois, and one bushel per acre higher in southern Illinois.

The 2007 average corn yields ranged from 145 bushels per acre to 201 bushels per acre for the different regions.

"The 2007 average corn yield in the different geographical locations ranged from four bushels per acre lower to 19 bushels per acre higher than the four-year average from 2004 to 2007," he said.

"Soybean yields were the same for central Illinois but lower for northern and southern Illinois when compared to the year before.

"The 2007 average soybean yields ranged from 37 bushels per acre to 55 bushels per acre for the different regions."

For more information, contact Bob Sampson at 217-244-0225.