2023 Spring Farm
Intro - Challenges that lay ahead for Logan County producers
By John Fulton
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[April 04, 2023]
In the
world of agriculture, some things have improved, but many of the
challenges of the preceding year remain. At least temporarily,
energy prices are off their highs. Some fertilizer prices have also
eased. Availability of some items has increased, while others have
decreased. Outside factors have also rocked the world of producers
and consumers, with the price and availability of eggs being one
glaring example. |
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 Land
costs remain high for producers. According to the Corn and Soybean
Budgets from Gary Schnitkey at the U of I, highly productive land in
Central Illinois brings an average land cost of $341 per acre for
the cash rent. Based on average yields of 227-bushel corn and
72-bushel soybeans used in the budgets, the breakeven price of corn
rests at $5.28 and soybeans at $12.13. Those are lofty yields -
basically at the levels we had this past year. If things go
according to the assumptions in the budgets, returns of $72 for corn
and $92 for soybeans are anticipated per acre.
The availability of new farm equipment is very limited. Many of the
companies are in a custom order situation for the equipment.
Backlogs vary, but may be most of a year in some instances. Parts
availability is also highly variable. Costs of used equipment
continues to rise, similar in nature to the auto market. For those
not in agriculture, a recent model used combine can be around
$500,000 and the corn and soybean heads for the combine can add
another $200,000. It isn’t hard to spend a quarter of a million
dollars on a "row crop” tractor either. Some of the issues are labor
related, some are material related, and supply and demand greatly
influences availability as well. The microchip shortage is also
affecting availability of power and machinery units for agriculture.
Many experts are anticipating a gradual increase in chip
availability, with some shortages existing through at least this
year.
A new Ag Census survey has
been conducted this year. This is done every five years.
Unfortunately, local level data will take quite a while to be
tabulated. Trends from the 2017 ag census will most likely continue
– and even accelerate. One of the more noticeable trends was the
size of farms was increasing at both the large and small ends. These
increases took more farms out of the moderate sizes. The trend is
easily justified as large farms are becoming more prevalent in the
production of row crops and livestock, to better utilize valuable
equipment. The smaller farms are increasing in numbers as the
production of specialty crops, fruits, vegetables, and specialty
livestock increases to support the farm-to-table and farmers market
movements.
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Weather is one thing we can’t
control. There have been some additional irrigation systems
installed in the county to help mitigate shortages in rainfall. The
National Weather Service expectations through May are for about
average temperatures and above average rainfall. Remember, averages
contain highs and lows, and are often based on extremes at either
end of the spectrum. Timely field operations are key to dealing with
the extremes, and are a large reason for trying to have excess
capacity such as larger and more efficient equipment.
As we enter the field preparation and planting season, please remain
vigilant on the roads. Large equipment traveling at a slower speed
than other vehicles can create unsafe conditions if everyone isn’t
being cautious and taking things in stride. Give the farm equipment
adequate room and proceed around it with caution. Let’s have a safe
spring planting season on our roads!
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