2017 Fall Farm Outlook

2017 Logan County Fall Farm Outlook Magazine LINCOLN DAILY NEWS Oct. 25, 2017 Page 5 capacity to plant in a short time frame, the support system for inputs, and the continued improvement in genetics available for planting. Good yields aren’t only occurring in our area. The world grain supplies are being added to each year. The economic principle of supply and demand is definitely in effect. If there are larger quantities of commodities, such as corn or soybeans, there must be increased demand – or the price goes down. We are seeing that in local crop prices, but particularly in the corn market. Futures prices for corn show over a 15% decrease from the July highs to early October. The soybean market has also seen a decrease of about seven percent from the July high. In order to keep income up for producers, they have to produce more bushels to sell at the lower price in order to stabilize income. Looking at 2018 projected crop budgets produced by Gary Schnitkey, University of Illinois Ag Economist, corn after soybeans in our area produces an income of $775 per acre. This uses a $3.80 price for 204 bushels per acre of yield. The direct production costs are listed at $533 per acre, leaving $242 per acre to pay for land costs and provide a return to the operator. Corn after corn is worse, with some decreased yields, resulting in $189 to pay for land costs and provide a return. Soybeans are anticipated to be somewhat better for next year with $601 gross income and $335 direct production costs, leaving $266 per acre for land and return. These were based on expected yields of 62 bushel soybeans and a price of $9.70. Continued ►►