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 2014 Data
In the years leading up to 2014, farmers in Illinois profited off of
corn prices that ranged between $6 and $8 per bushel. In 2012, corn
prices even exceeded $8 per bushel. However, in 2014, the bottom
fell out of the corn market, and prices fell in a major way.
According to data from the University of Illinois, the average price
for corn by the end of 2014 was $4.11.
Additional data from the USDA that was released in June of 2015
reveals that 11.9 million acres of corn were planted in the state of
Illinois in 2014. Of that total, an estimated 11.8 million acres
were harvested.
In Logan County, farmers planted an estimated 201,500 acres of corn.
200,000 acres were harvested, the average yield was 230.8 bushels
per acre, and the total number of bushels was 46,156,000. This data
was provided by the USDA, and applies to 2014.
On the other side of the coin, soybean prices have not been as
relatively stable when compared to corn. From 2012 through the first
half of 2014, United States farmers benefitted from bean prices that
ranged from $12 to nearly $16 per bushel.
Soybean prices have jumped up and down since September of 2014.
Earlier this month, Darrel Good in a post on the University of
Illinois Farmdoc website said, “Soybean prices have been on a roller
coaster over the past three months. November 2015 soybean futures
traded to a high of $10.45 on July 14, declined to a low of $8.53 on
September 11, and rebounded to a high of $9.16 on October 14.”
Regardless of increase or decrease, bean prices are much lower than
they once were. Due to the wide range of soybean prices in 2014, the
average price for beans comes in at $12.48. However, this is because
bean prices looked good in the first half of the year, but they fell
drastically in the second half.
According to the USDA, 9.8 million acres of soybeans were planted in
2014 in Illinois. Of that amount, an estimated 9.78 million acres
were harvested. As for Logan County specifically, farmers planted
136,500 acres of soybeans; 136,300 acres were harvested.
2015 Data
According to the USDA, soybean crops nationwide saw an increase in
planting. Overall, the United States is set to increase soybean
production by two percent from 2014. This may not sound like much,
but that two percent translates to nearly 1.5 million acres. The
USDA estimates that 85 million acres of soybeans have been planted
this year in the United States.
Corn, on the other hand, is reportedly down by two percent in the
US. That two percent roughly means that two million less acres of
corn were planted in 2015. The total acreage of corn planted this
year is 88,987,000 acres. Statistically, corn is being planted at
the lowest level nationwide since 2010.
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According to a separate study conducted by the USDA, the percentage
of acres planted with soybeans following another crop has not
changed from 2014 to 2015. Both years indicate a percentage of
soybeans planted after a different crop at four percent. This does
not mean farmers in Illinois are not switching to soybeans; just
that other farmers are switching away from soybeans and the figures
are cancelling out.
What does this mean for the state of Illinois? According to the
USDA, 11.75 million acres of corn have been planted in Illinois this
year, and the forecasted harvest is 11.65 million acres. 10.1
million acres of soybeans were planted in Illinois this year, with
an estimated harvest of 10.01 million acres.
As of October 22nd, the average corn price for central Illinois is
$3.64, and the average soybean price is $8.85. According to the USDA
Farm Service Agency, Logan County farmers planted 199,363 acres of
corn and 143,047 acres of soybeans.
As we’ve seen recently, crop prices can fluctuate with little
warning, especially soybean prices. Furthermore, these prices apply
to the state of Illinois as a whole, not individual farmers. At a
glance, it certainly seems that farmers in Illinois may be set to
make more money from soybeans in 2015 than they have in the past and
less money than they used to from corn. However, it is too early to
say whether or not that increase in profit will be because of
prices, or because of the increased amount of production.
Resources Cited
Good, D. "Weekly
Outlook: Which Way for Soybean Prices?" farmdoc
daily (5):193, Department of Agricultural and Consumer
Economics, University of Illinois at Urbana-Champaign, October 19,
2015.
http://www.chicagotribune.com/business/ct-i
llinois-farmers-plant-more-soybeans-less-
corn-20150630-story.html
http://web.extension.illinois.edu/lms/factsheets
/fs1381.html
http://www.fsa.usda.gov/FSA/webapp?area=newsroom&subject=landing&topic
=foi-er-fri-cad
http://www.nass.usda.gov/Statistics_by
_State/Illinois/index.php |
