Calendar | Logan County Extension Unit | Ag News Elsewhere [fresh daily from the Web]

2006 production costs          Send a link to a friend

Report shows corn costs up 6.5 percent

[April 13, 2007]  URBANA -- Total costs to produce corn in Illinois in 2006 were $488 per acre, a 6.5 percent increase over 2005, according to a recent University of Illinois Extension study. The same report showed costs for soybeans increased $24 per acre over the same period.

"Broken down by regions, costs were lower in southern Illinois, primarily because of lower land costs," said Dale Lattz, U of I Extension farm management specialist who prepared "Cost to Produce Corn and Soybeans in Illinois -- 2006," a report available online at Extension's Farmdoc site.

"The total of all economic costs per bushel in the different sections of the state ranged from $2.74 to $3.11 for corn and from $6.94 to $7.30 for soybeans," Lattz said. "Variations in this cost were related to weather, yields and land quality."

The report was prepared with data provided by the Illinois Farm Business Farm Management Association, which consists of 5,800-plus farmers and 60 professional field staff. The state is divided into four regions for the study: northern, central with "high" soil ratings, central with "low" soil ratings and southern.

"The sample farms had no livestock and had more than 500 acres of productive and nearly level soils in each area of the state," said Lattz.

In 2006, the total of all economic costs per acre for growing corn in Illinois averaged $502 in the northern section, $500 in the central "high" section, $472 in the central "low" section and $448 in southern Illinois. Soybean costs per acre were $387, $386, $361 and $341, respectively.

"Costs per bushel of corn in 2006 as compared to 2005 were lower for all geographic areas of the state except the southern region," said Lattz. "Costs per bushel were lower due to higher corn yields.

"The average corn yield in 2006 was 38 bushels per acre higher in northern Illinois than in 2005, 20 to 25 bushels higher in central Illinois and six bushels per acre higher in southern Illinois."

[to top of second column]

However, costs per acre were higher in all of the different geographic sections compared to 2005.

"Across the state, total costs per acre to produce corn increased 5 to 8 percent," said Lattz. "A number of costs increased, including fertilizer, seed, fuel, insurance and land costs.

"The non-land interest cost per acre increased the most, due to higher interest rates and higher grain inventory values."

Production costs per bushel of soybeans in 2006 increased in all areas of the state except for the northern region as compared to 2005.

"Costs per bushel for soybeans increased mainly due to higher per-acre costs," he explained. "Soybean yields were the same or slightly higher than the year before except for the southern region. Soybean yields ranged from one bushel per acre lower to four bushels per acre higher in 2006 as compared to 2005.

"Increases in costs per bushel ranged from 12 cents in central Illinois with the lower rated soils to 71 cents in southern Illinois. Costs per bushel were 5 cents less in northern Illinois."

Like corn, total costs per acre to produce soybeans increased in all geographic regions of the state compared to 2005. Costs increased $27 per acre in northern Illinois, $19 per acre in central "high" soils, $20 per acre in central "low" soils and $28 per acre in southern Illinois.

"Fertilizer, fuel and interest were some of the costs that increased," said Lattz. "Average soybean yields in the different areas ranged from one to six bushels per acre higher than the four-year average from 2003 to 2006."

[Text from file received from the University of Illinois Extension]


< Recent articles

Back to top


News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries

Community | Perspectives | Law & Courts | Leisure Time | Spiritual Life | Health & Fitness | Teen Scene
Calendar | Letters to the Editor