Download Full Report Contact Glennis McClure Extension Educator Farm and Ranch Management Analyst 402-472-0661 gmcclure3@unl.edu This publication includes budgets for northern, central, and southern Illinois, with central Illinois further broken down into estimates for 1) high-productivity farmland having a 2022 expected corn (soybean) yield of 220 (69) bushels per acre and 2) low productivity farmland with a 2022 expected corn (soybean) yield of 209 (62) bushels per acre. Fortunately, ag economists at the University of Illinois keep up on all those numbers, and have an entire listing of costs for various field operations located on their Farmdoc website. The diesel fuel price was increased from $2.50 per gallon in 2019 to $2.75 per gallon in 2021. The values of P and K are accurate to what would be returned. The range of responses also give the user an idea of how variable the rates charged for field activities might be. Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Briomass Crop Budget Tool Miscanthus & Switchgrass, Illinois Soil Productivity & Yield Utilities, Farmland LEasing Facts Sheets & Pricing Information, Machinery Cost Estimates: Field Operations, Machinery Cost Estimates: Forage Field Operations, 2022 Planting Decisions, Nitrogen Fertilizer Prices, and Corn and Soybean Prices, Department of Agricultural and Consumer Economics. The rates reported in this guide summarize a statewide survey conducted online and by solicitations of University of Missouri Extension specialists in the spring of 2023. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. Machinery Cost Estimates Summary. Haul manure? Sign up to participate in the Custom Rates for Farm Services in Missouri survey and to stay informed of updates. Non-land Costs: Costs are projected to rise considerably for the 2022 crop year. Illinois Farm Management Handbook. of K. However, it is important to calculate N losses at about 75%, thus only about 10 lbs. Yields for 2021 have been raised slightly from trends, as the growing season appears favorable across much of Illinois. A return to 2014-2020 average prices seems quite possible. The diesel fuel price was increased from $2.25 per gallon in 2017 to $2.50 per gallon in 2019. of N are returned to the soil. MSU is an affirmative-action, equal-opportunity employer, committed to achieving excellence through a diverse workforce and inclusive culture that encourages all people to reach their full potential. Obviously, much can change between now and delivery in both years. The last time machinery costs were released on farmdoc was in 2017. Lattz, D. and G. Schnitkey. Each year, eHay Weekly offers readers a one-stop shop for accessing custom field work rate information from those states that have done . Machinery Cost Estimates: Tractors. Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated October 11, 2021. of N, 20 lbs. Total non-land costs for corn are projected at $677 per acre, up by $70 per acre from the 2021 level of $607 per acre. Calculate your own costs carefully before deciding the rate to charge or pay. @gW?#fb``e ` )4 Machinery cost estimates for agricultural uses have been updated for 2019. A return to 2014-2020 average prices seems quite possible. At the 2014-2020 average price of $3.73 per bushel, farmer return would be -$145 per acre, well below any recent return. The purchase price is assumed to equal 85% of the list price of the tractor. As in past years, this guide reports the average rate, and the low, mid and high rates reported by those providing responses. The survey was conducted in 2020, and was expanded to include more custom operations and equipment rentals than the previous versions. As farmers prepare to sharpen the pencil, I think it is important to look at what hay costs to produce. The $677 per acre is higher than all previous non-land costs, surpassing the previous high of $617 per acre in 2014. Without a return of these ad hoc programs, returns in 2021 will be below those experienced in 2018 through 2020 if prices return to 2014-2020 prices without having yields well above trend. The $24 per acre corn projection compares to an average farmer return of $4 per acre from 2014 to 2020. Lattz, D. and G. Schnitkey. These rates, except where noted, include the implement and tractor if required, all variable machinery costs such as fuel, oil, lube, twine, etc., and the labor for the operation. Non-land costs for 2022 corn and soybean production are projected to be at all-time highs. hb```a``z B@16,N-,L s2.\ rkT2;t(am`m``P]=in?\5NP9Z^!SVzElIT?U=)"]vjVh Diesel prices have increased by 38 percent in the last three years. Machinery Cost Estimates: Summary. Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated October 11, 2021. Higher costs have led to a situation were higher prices and above trend yields are needed for profitability. The $12.35 price for soybeans is $2.44 higher than the 2014-2020 average of $9.91. A return to average 2014-2020 prices will result in negative 2022 returns if yields are at or below trend. These values are taken from the July 2021 version of Revenues and Costs for Illinois Grain Crops, a publication available on farmdoc showing actual returns from 2015 to 2020 and projections for 2021 and 2022. Schnitkey, G. Crop Budgets, Illinois, 2022. Illinois Farm Management Handbook. ", Revenues and Costs for Illinois Grain Crops, Revenue and Costs for Illinois Grain Crops, Actual for 2015 through 2020, Projected for 2021 and 2022, 2021 Fertilizer Price Increases in Perspective, with Implications for 2022 Costs, Department of Agricultural and Consumer Economics, Department of Agricultural, Environmental and Development Economics. combine platform head from Case IH on display at 2023 Commodity Classic. They indicate the number of responses for that activity and the variation in those responses. JavaScript seems to be disabled in your browser. We provide machinery cost estimates which may be useful in setting custom rates. * Required field. Custom rates in a given area may vary significantly according to timeliness, operator skill, field size and shape, crop conditions, the performance characteristics of the machine being used, the relationship between the custom operator and the person needing custom work done, competitive pressures, and economic circumstances of the custom operator. There is no assurance that the average rates reported in this guide will cover your costs for performing the service or that you will be able to hire a custom operator in your area for the rates shown. Publication Date: October 11, 2021. Similarly, more acres of use will generally reduce per acre costs of a field implement. The 2020 Nebraska Farm Custom Rates Report is now available at farm.unl.edu/customrates. When few responses are averaged, a single response can move the average a lot. Fuel use on a 310 horsepower tractor is estimated at 13.6 gallons per hour. Machinery cost estimates for 2019 have been released. We asked farmers, agribusiness firms and land improvement contractors to provide the rates they were charging or paying in 2022 for custom services, excluding the cost of . The Median rate had an equal number of responses higher and lower. For a detailed statement, please see the University of Illinois Copyright Information and Policies here. This information is intended to give farmers looking to hire a custom operator or custom operators a starting point in negotiating a price for various services. A worksheet on the final page of the fact sheet is provided for their own machinery costs to calculate cost of ownership and custom rates for various pieces of machinery. Report ID: Summary of costs for Field Operations, Havest Operations, Tractor and Forage Operations. These rates, except where noted, include the implement and tractor if required, all variable machinery costs such as fuel, oil, lube, twine, etc., and the labor for the operation. For 2020, revenues and costs are summarized from grain farms enrolled in Illinois Farm Business Farm Management (FBFM). Labor. We provide machinery cost estimates which may be helpful in setting custom rates. 0 However, the remaining portion of the growing season may impact yields. Fuel costs will vary with each operation's fuel use. These estimates are useful for determining custom rates and for analyzing machinery costs on farms. 1993 to document.write(new Date().getFullYear()) Curators of the University of Missouri, all rights reserved, DMCA and other copyright information. A central question then is: How long will higher prices last? Use has a large impact on per hour costs. for a look at their summary, including commentary by farm management experts Dale Lattz and Gary Schnitkey. ) Fuel price and interest rate increases also contributed to higher prices. The site navigation utilizes arrow, enter, escape, and space bar key commands. Projections are made for 2021 and 2022. Labor time is assumed to be 1.1 times the tractor hour resulting in a 10% higher cost per tractor hour. Without a return of these ad hoc programs, returns in 2021 will be below those experienced in 2018 through 2020 if prices return to 2014-2020 prices without having yields well above trend. The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. A return to 2014-2020 average prices will cause negative 2022 projected farmer returns if yields remain at or below trend yields. Like corn, both the 2021 and 2022 prices are well above the average price for 2014 through 2020 of $9.91 per bushel. Per hour costs are divided into overhead, fuel, and labor categories. About This Report. Farm Progress Show annually hosts more than 600 exhibitors displaying new farm equipment, tractors, combines and farm implements; seed and crop protection products; and many additional farm supplies and services. Costs for most operations are higher in 2021 than in 2019, with most of the increases due to increases in list prices of machines. FAST Tools. In determining the rates beyond 2020, custom operators and farm owners . Extension Professor, Agricultural Business and Policy. Assuming a 1200lb round bale is 15% moisture, the nutrient value per bale is $12.91. Table 2 shows estimated costs in 2017 and 2019 for several different tractors sizes, combining corn and soybeans, a field cultivator, and a conventional planter. Subscribe to receive top agriculture news, Be informed daily with these free e-newsletters. Between 2019 and 2021, the list price on a 310 HP tractor increased by 9.1% from $410,256 in 2019 to $447,479 in 2021. F)gpZACw}+{ % LxH1%0lT0~zgGV~D f ? For the best experience on our site, be sure to turn on Javascript in your browser. In addition to the University of Minnesota, other university resources included to compile these results include Iowa State University, Kansas State University, University of Illinois, University of Wisconsin, Purdue University, University of Nebraska, Ohio State University and Oklahoma State. We provide machinery cost estimates which may be helpful in setting custom rates. FAST aids users in performing financial analysis, assessing investment decisions, and evaluating the impacts of various management decisions. Click here (http://www.farmdoc.uiuc.edu/manage/machinery/machinery_summary.html) for the complete table of custom rates, which also lists tractors of various sizes. Per hour costs are divided into overhead, fuel, and labor categories. Use Esc key to go back to input search field. University of Illinois Extension Guidelines are available here. Annually, Iowa State University surveys those who hire and/or perform custom farm services and compiles a report of results. Estimated machinery costs often are used in setting custom rates where one individual performs a field operation for another individual. Estimated machinery costs often are used to set custom rates when one individual performs a field operation for another individual. The University of Minnesota provides total machine cost per acre, machine rates per hour and estimates of acres per hour fuel usage for many of the machines. Estimated machinery costs often are used in setting custom rates where one individual performs a field operation for another individual. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. There are three years shown in Table 1. By Mike Rankin. Go to Custom Rates, location icon102 Filley Hall Lincoln, NE 68583. ltimas Notcias. These results have also been compared to previous custom rates surveys to see if the direction and magnitude of changes seems reasonable. One expects supply responses in both Brazil and the U.S., as well as Russia, Ukraine, and Kazakhstan, to lead to lower commodity prices eventually. Pesticide and seed in 2022 are projected to increase by 8 percent over 2021 levels. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. In 2018, 2019, and 2020, ad hoc Federal payments were important sources of revenue. Machinery cost estimates for 2021 have been released and are available on the farmdoc website (see Management section of farmdoc). This publication shows estimated costs for combining, using grain carts, and hauling grain. Fortunately, ag economists at the University of Illinois keep up on all those numbers, and have an entire listing of costs for various field operations located on their Farmdoc website. Per acre cost estimates are made based on assumptions concerning prices, interest rates, and use. Self-propelled at $4.40 per acre Pull-type at $3.90 per acre Anhydrous ammonia at $16.50 per acre Liquid fertilizer applicator at $23.50 per acre Other costs Also consider fuel and labor costs: Fuel. Department of Agricultural and Consumer Economics The fact sheet includes custom rates averaged from all the surveys and maximum and minimum rates reported. The $150 soybean projection compares to an average of $88 per acre from 2014 to 2020 (see Figure 1). Click here (http://www.farmdoc.uiuc.edu/manage/newsletters/fefo06_16/fefo06_16.html) for a look at their summary, including commentary by farm management experts Dale Lattz and Gary Schnitkey. This increase in the costs of inputs into custom activities suggest that custom rates should have increased over the past several years. Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Briomass Crop Budget Tool Miscanthus & Switchgrass, Illinois Soil Productivity & Yield Utilities, Farmland LEasing Facts Sheets & Pricing Information, https://farmdoc.illinois.edu/handbook/field-operations, https://farmdoc.illinois.edu/handbook/tractor-costs, https://farmdoc.illinois.edu/handbook/harvest-operations, https://farmdoc.illinois.edu/handbook/forage-operations, https://farmdoc.illinois.edu/handbook/machinery-cost-estimates-summary, Adverse Corn and Soybean Price Scenarios for 2020 and 2021, Department of Agricultural and Consumer Economics. Higher returns in 2021 likely will lead to debt retirement, causing lower debt levels in 2022 with steady interest rates. FAST (Farm Analysis Solution Tools) are a suite of Microsoft Excel spreadsheets designed to assist those in agriculture make better decisions via user-friendly computer programs. Lattz, D. and G. Schnitkey. June 10, 2019. If you are figuring what it costs you to make hay on your farm, add mowing, raking . But, of course, poor growing conditions could also occur in major production regions in 2022. Issued in furtherance of MSU Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. The USDA reports that machinery values and labor costs have increased by about 23 percent and 18 percent, respectively, since our last custom rate survey in 2019. All rights reserved. But it is still a very popular Extension guide. Custom Rates for Farm Services in Missouri. Crop Insurance Summary of Business Tool (Sheet), Post Application Coverage Endorsement Tool (Sheet), Balance Sheet & Historical Financial Statements, Post Application Coverage Endorsement Tool, Biomass Crop Budget Tool Miscanthus and Switchgrass, Illinois Soil Productivity and Yield Utilities, Illinois Crop Budgets and Historic Returns, Department of Agricultural and Consumer Economics. Formulas are used to estimate each cost, and the purchase price enters into those formulas. The report also lists hourly rates for tractor rentals as well as farm labor costs. Before entering into an agreement, discuss with the other party all the details of the specific job to be performed. Machinery Cost Estimates: Forage Field Operations. Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated October 11, 2021. Combined with yields at or above trend in the U.S., those conditions would likely lead to lower corn and soybean prices in 2022. The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. Machinery repairs are projected to increase 10%. Rentals Details: Web(47) 3433-2020 /iot.joinville. Machinery costs are updated every two years, with the last update occurring in 2019. Total costs for the 310 horsepower tractor were estimated at $181.10 per hour in 2019 (see Table 1) and per hour increased by 4% to $189.20 per hour in 2021 (see Table 1). For corn, a $5.25 per bushel price is used for 2021 and a $4.50 per bushel price for 2022. Number 8860726. Fuel use on a 310 horsepower tractor is estimated at 13.6 gallons per hour. For each type of work, the average rate from the survey, the median, and the range are shown. Operator and Land Return: Operator and land returns represent a return to the farmer and the landowner. of P, and 50 lbs. Many of them are involved in the Extension Income Tax Advisory Committee. Overhead includes depreciation, interest, insurance and housing, and repairs. Per acre costs did not necessarily go up as much depending on assumptions for field efficiency and acres covered. Lattz, D. and G. Schnitkey. For a detailed statement, please see the University of Illinois Copyright Information and Policies here. Mowing, raking, and baling. Rates are available in the PDF file, available via the Download this publication button. More detail on the approaches used to estimate overhead costs are given in the Machinery Cost Estimates: Tractors (https://farmdoc.illinois.edu/handbook/tractor-costs) publication. for the complete table of custom rates, which also lists tractors of various sizes. This publication reports custom rates based on a statewide survey of 377 farmers, custom operators, farm managers, and landowners conducted in 2020. Machinery costs estimates are available in the management section of farmdoc in five publications: Costs are estimated in both 2017 and 2019 using an estimation approach that relies on formulas developed by the American Society of Agricultural Engineers (ASAE). Costs for most operations are higher in 2019 than in 2017. endstream endobj 366 0 obj <>/Metadata 166 0 R/OCProperties<>/OCGs[393 0 R]>>/Outlines 250 0 R/Pages 358 0 R/StructTreeRoot 262 0 R/Type/Catalog>> endobj 367 0 obj <. If you are figuring what it costs you to make hay on your farm, add mowing, raking, and baling at 20.20 per bale (Machinery Cost Estimates, University of Illinois Extension, June 2015). 2019 Custom Machine and Work Rate Estimates, 1998 Childrens Online Privacy Protection Act (COPPA). An additional amount for profit should be added to our cost estimates, as we have not added an amount for returns. Research Analyst, Agricultural Business and Policy Extension, Raymond E. Massey The list price increase will also increase costs but is countered by a decline in interest rates from 5.5% in 2019 to 4.5% in 2021. Allowances for profit are not included. UNL web framework and quality assurance provided by the, Apply to the University of NebraskaLincoln, Give to the University of NebraskaLincoln, Institute of Agriculture and Natural Resources, Rural Economic and Community Vitality Certificate, Center for Ag Profitability Farm and Ranch Management Resources, Industrial Organization of the Agri-Food System. You may unsubscribe or change your preferences at any time. An $18 per hour rate was used in 2017 compared to $19 per hour rate in 2019. The University of Minnesota provides total machine cost per acre, machine rates per hour and estimates of acres per hour fuel usage for many of the machines. For soybeans, a $13.60 per bushel price is used for 2021, and a $12.35 per bushel price is used for 2022. Overhead costs also increased because interest rates were increased from 5.0% in 2017 to 5.5% in 2019. Most of the increases are due to increases in list prices of machines. The 2021 estimates appear in the 2021 tractor costs publications, while the 2017 and 2019 costs appear in the machinery costs 2017 and 2019 editions. To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters. 406 0 obj <>stream In all cases, list prices for the equipment went up and ranged from 7.1% to 13.8%. Understanding the . Urbana, The purchase price is assumed to equal 85% of the list price of the tractor. Several points on projections: Yields: The 2022 projections are trend yields of 220 bushels per acre for corn and 69 bushels per acre for soybeans. am I understand that I will participate in the Custom Rates for Farms Services in Missouri survey and I will be informed of updates. Twenty percent of the respondents perform custom work, 14% hire work done, 59% indicated doing both, 6% indicated doing neither, and 1% did not indicate whether they perform or hire custom work. In calculating costs, for example, 300 hours of use were assumed for tractors. Download the 2019 Custom Machine and Work Rate Estimates. Making hay is a consuming summer-time task. These estimates are useful for determining custom rates and for analyzing machinery costs on farms. For more information, visit https://extension.msu.edu. Substantial increases in list prices of machinery occurred between 2019 and 2021. An $18 per hour rate was used in 2017 compared to $19 per hour rate in 2019. illinois custom farming rates 2020 . Labor time is assumed to be 1.1 times the tractor hour resulting in a 10% higher cost per tractor hour. The projected higher returns in 2022 would occur because of higher-than-average corn and soybean prices. Assuming a 1200lb round bale is 15% moisture, the nutrient value per bale is $12.91. However, the results presented here have been compared to custom rates guides in Iowa to see if our rates are in line with their rates. hbbd```b``IA$b"E``f0[~&E \"AX"0& A)DrtIn`o #PK? For a detailed statement, please see the University of Illinois Copyright Information and Policies here. Informa Markets, a trading division of Informa PLC. per hour in 2019 (see Table 1). For the best experience on our site, be sure to turn on Javascript in your browser. The articles are written by Extension Specialists. endstream endobj startxref Robert Battel, Michigan State University Extension - In this situation, the extremes may have unduly influenced the average reported. Fertilizer prices for Illinois published by USDA (May 12 report) are: N $0.40, P $0.34, K $0.29. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. The rates reported in this guide summarize a statewide survey conducted online and by solicitations of University of Missouri Extension specialists in the spring of 2023. University of Illinois Here, a look at cost estimates of field, forage and harvesting operations, plus per-hour tractor operating costs. An additional amount for profit should be added to our cost estimates, as we have not added an amount for returns. Editors note Registered in England and Wales. Fertilizer prices for Illinois published by USDA (May 12 report) are: N $0.40, P $0.34, K $0.29. Copies of the new guide can also be obtained from the Extension Crawford County Office at 608-326-0223. We comply with the Federal Trade Commission 1998 Childrens Online Privacy Protection Act (COPPA). This publication reports custom rates based on a statewide survey of 377 farmers, custom operators, farm managers, and landowners conducted in 2020. Farm Progress is part of the Informa Markets Division of Informa PLC. Costs include overhead (depreciation, interest, insurance, housing and repairs), fuel and labor. Higher hours of use will lower per hour costs as depreciation and interest costs are spread over more hours. Fewer people respond to this survey every time it is taken every three years. Every ton of hay contains approximately 40 lbs. University of Missouri Extension is an equal opportunity/access/affirmative action/pro-disabled and veteran employer. Enter and space open menus and escape closes them as well. More detail on the approaches used to estimate overhead costs are given in the Machinery Cost Estimates: Tractors publication. A $19 per hour rate was used in 2019 compared to a $20 per hour rate in 2021. Machinery Cost Estimates: Field Operations. Illinois Farm Management Handbook, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, updated October 11, 2021. Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual orientation, marital status, family status or veteran status. Between 2017 and 2019, most per acre costs increased between 7 and 9 percent. Fortunately, ag economists at the University of Illinois keep up on all those numbers, and have an entire listing of costs for various field operations located on their Farmdoc website. ) Learn more Ruraltax.org contains many articles on taxes aimed at farm and land owners. In 2018, 2019, and 2020, ad hoc Federal payments were important sources of revenue. These represent averages across a variety of farms with different situations. Using current nutrient values, hay has a fertilizer value of $25.30 per dry ton. Custom rate guides are popular documents in those states that continue to do the survey legwork; unfortunately, many do not. The rates reported in the publication were the prevailing rates in the spring of 2020. If farmland is cash rented, subtracting the cash rent from the operator and land return gives the farmer return.