2005 Production Costs Jump

URBANA - Producing corn and soybeans in Illinois in 2005 cost more than in 2004, according to a recent University of Illinois Extension study.
calendar icon 13 June 2006
clock icon 3 minute read

"Total costs to produce corn for all combined areas of the state were $458 per acre in 2005, an 8 percent increase over the year before," said Dale Lattz, U of I Extension farm financial management specialist, who prepared the study. "Total cost per acre to produce soybeans increased, from $333 per acre in 2004 to $351 per acre in 2005."

In general, the same factors that increased costs for corn production--fertilizer, seeds, pesticides, and fuel--also drove the jump in soybean production costs, Lattz noted. Interest and land costs also increased. The survey was prepared with data from the Illinois Farm Business Farm Management (FBFM) Association, which includes data from 6,000 farmers. The farms sampled had no livestock and had more than 500 acres of productive and nearly level soils in each area of the state.

"Costs were lower in southern Illinois primarily because of lower land costs," Lattz noted. Costs per bushel of corn in 2005 were significantly higher for all geographic areas of the state as compared to 2004. "Costs per bushel were 81 cents higher in northern Illinois, 78 cents higher in central Illinois with the lower rated soils, 67 cents higher in central Illinois with higher rated soils, and 82 cents higher in southern Illinois," Lattz said.

"Production costs per bushel of soybeans also increased significantly in all areas of the state compared to 2004. And like corn, total costs per acre increased in all geographic sections of the state." The average corn yield in 2005 was 40 bushels per acre lower than 2004 in northern Illinois, 30 to 34 bushels lower in central Illinois, and 32 bushels per acre lower in southern Illinois.

Soybean yields ranged from one to three bushels per acre lower in 2005 as compared to 2004, Lattz said. "The average corn yield was the lowest since 2002 and the second lowest since 1998," he said. "Total costs per acre were the highest on record. Total costs per bushel were the fourth highest since 1981.

"The average soybean yield--52 bushels per acre--was the second highest on record. The previous high yield of 54 bushels per acre was recorded in 2004." The complete report, "Cost to Produce Corn and Soybeans in Illinois--2005," can be read online at U of Extension's farmdoc at http://www.farmdoc.uiuc.edu/manage/newsletters/fefo06_09/fefo06_09.html .

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