The effective reference price is the maximum of the statutory reference price ($8.40 per bushel for soybeans) and 85% of the five-year Olympic average of MYA prices, lagged one year. Open storage and warehouse receipts are shrunk to 14.0% moisture, Corn Drying 5 cents/point of moisture above 15.0%, based on half points, from 15.1 19.0.0%, 4 cents/point of moisture, based on half points, from 19.1-24.0%, 3.5 cents/point of moisture, based on half points, above 24.1%, Damage 1 cent each point of damage above 5%, to 7.0%, 2 cents a point from 7.1% to 10.0% Depending on the farm size, number of farm operators, and where grain is transported out of the field, it can be cost effective to hire a custom grain hauler. WebHarvesting, Drying, and Hauling Grain (continued) Average Charge Median Charge Range Number of Responses Drying corn (includes fuel, electricity, labor) - continuous flow Unfortunately, input costs rose dramatically this year, too, as inflation soaked the economy. Lattz, D. and G. Schnitkey. The desirable moisture level for harvested soybeans is 13% moisture. From 2019 to 2022, the average cropland for grain production value increased 128%, from $1,875 to $4,271 per acre. stream These rates are only intended as a guide. However, mature soybeans can dry quickly, in a matter of hours, rather than days. Its already bottle-necked a little as it is, he said, noting this is why many of the bigger outfits simply haul their own grain greater distances, some all the way down to the barges near Evansville. ARC-IC returned to its more typical 1% enrollment level in 2021 and 2022. Net corn export sales were 1.362 mmt, down 1 percent from the past week. For the week ending December 3, unshipped balances of wheat, corn, and soybeans totaled 57.8 million metric tons (mmt). Farms completely prevented from planting could receive large ARC-IC payments for the 2019 crop year, information which was known during the signup period (for more detailed discussion, see farmdoc daily, February 4, 2020, and April 18, 2023). Under the 2018 Farm Bill, farmers made commodity title choices for: ARC-IC use of 6% was relatively high in 2019 and 2020 because of the prevalence of prevented planting associated with widespread flooding during the 2019 spring planting season (see Figure 1). For a given size of combine, the economic cost per acre declines as the acreage increases. Monticello, IL 61856, 1998-2023 Topflight Grain Cooperative. Custom Rates for Grain Sorghum Harvest, 2018, by District District The economic cost of harvesting soybeans is $32.70 per acre, nearly $3 per acre below the custom rate average and median. And while interest rates for ag-lending are favorable right now, a sudden drop in crop prices could leave even the bigger farmers in the lurch. Benchmark revenue equals benchmark price times benchmark yield, where both the benchmark yield and price are based on the five-previous values lagged one year (see farmdoc daily, September 17, 2019). endobj Another improvement would be eliminating the requirement to enroll in PLC to purchase SCO. And people are still quitting due to the costs.. ARC-CO payments are capped at 10% of benchmark revenue. I am getting 1/2 penny per bushel per mile. A farmer evaluating costs and returns may consider whether to own a combine versus outsourcing the task. Given this reference price, PLC would have paid in 2018 and 2019, the height of the trade war. The economic costs of owning and operating a grain cart (tractor overhead included) is based on a $57,500 grain cart with 1,000-bushel capacity used on 1,900 acres. Most of the farmers in the 1,500- to 1,800-acre category already truck greater distances depending on prices. %PDF-1.7 % The machinery cost estimates include overhead, fuel, and labor. WebTable 1: Grain Transport Cost Indicators (xlsx) - Weekly changes in truck, rail, barge, and ocean freight rates using diesel prices, nearby secondary rail market rates, Illinois barge In a letter sent to Clay City and Brazil grain customers by Ceres Solutions Cooperative CEO Jeffrey Troike dated August 12, producers were informed that: It has been determined that, due to the age and condition of our grain facilities, and also due to declining utilization, Ceres Solutions will no longer receive grain at the Clay City and Brazil locations as of December 31, 2021. = 15) to 28 cents (16+ (4x 3 mo.) Average December shuttle secondary railcar bids/offers (per car) were $299 above tariff for the week ending December 10. 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, Schnitkey, G., N. Paulson, C. Zulauf and J. Baltz. The effective reference price is the maximum of the statutory reference price ($8.40 per bushel for soybeans) and 85% of the five-year Olympic average of MYA prices, lagged one year. Ceres Solutions does offer grain services in partnership with Gavilon Grain in Clay Countys next-door neighbor Vigo Terre Haute, 22 miles from Brazil. "Cash Rents in 2020 and 2021." All grain delivered during the harvest period will be stored each Thursday evening unless prior arrangements have been made. When combines or grain carts are used on fewer acres than those referenced, the cost of operation rises. Outsourcing the task would reduce capital costs and may be a cost minimizing solution for some farms. farmdoc daily(4):37,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,February 27, 2014. Once soybeans have reached maturity, plants may still be too wet and green to harvest and grain moisture still above an acceptable level. "Effective Reference Price Past and Future." Annually, Iowa State University surveys those who hire and/or perform custom farm services and compiles a report of results. Soybean inspections decreased 8 percent from week to week, but inspections of corn increased 18 percent, as shipments to Asia increased significantly. These rates are only intended as a guide. Cost of production estimates, per bushel, for herbicide-tolerant soybeans are $8.89, $8.72 and $8.57 assuming 50, 56, and 62 bushels per acre, respectively. There were 1,022 grain barges unloaded in New Orleans, 13 percent higher than the previous week. Theres no doubt. 1 0 obj Typically combining costs are expressed on a per acre basis and run about $30.00 per acre ($0.20/bu @150 bu/acre). Or if a farmer is assisting a neighbor or seeking custom work, knowing their own cost of operation provides a baseline level for which to add a profit margin when setting a custom rate. Topflight Grains Mission: Our Topflight Grain Cooperative team is committed to the future of agriculture by improving the prosperity of our customers and employees through outstanding service, education, innovation, technology, and dedication. "The Agricultural Risk Coverage County Level (ARC-CO) Option in the 2018 Farm Bill." For example: Location A is offering $13.80/bu for equivalent allows producers to compare the 4,6. Since 1975 Alberta Agriculture & Rural Development has annually surveyed custom rates and rental rates to provide information to farmers and custom operators. Reasons for requiring PLC for the purchase of SCO are difficult to rationalize. 21-30 miles to The goal is to report what is being charged, not what should be charged. Because average custom combining costs for corn and soybeans are nearly the same as economic costs and timing could be an issue with a custom harvester, a farm with adequate labor will generally find it cost effective to own and operate a combine. WebThe total number of bushels in one load can not exceed 1,200. due to weight restrictions per load imposed by the Tennessee Department of Transportation (80,000 lb maximum). The exception to this date is to serve those customers who have a delivery contract in place. 2Based on costs in Table 4 and harvest of 1,900 acres. For example, a generational family farm may have different levels of ownership, own separate pieces of machinery, or have acreage shares that dont align with ownership, and these costs can be used as a resource for settling with other farm members. Whats Wrong with the Current Waters of the U.S. Rule? Farm Show 2020, By Brian Boyce Published: December 02, 2021. 3.5 cents per point of moisture, per bushel, removed above 24.0%, split on half points. farmdoc daily(9):203,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,October 29, 2019. Understanding the difference in the intent of the two reports, and acknowledging some differences in general assumptions (for example, fuel rate of $2.50 versus $2.63 per gallon), explains the potential differences in rates reported from each source. A partner in Allied Insurance Agency and broker of crop and farm insurance by day, Rubeck has been a lifelong producer as well as an auctioneer with 15 years in ag. To get to the average historical payment performance of the eight other large program crops, soybeans reference price would need to increase to $10.10, an increase of 20%. Each county either has 1) one yield series for All of the crop or 2) two series for non-irrigated and irrigated yields. This will affect every farmer in Clay County, he said, pointing out that such concentration leads to longer lines of trucks at fewer elevators farther apart. The seeds can absorb moisture overnight, so timing of harvest within a day may be important (see Nafziger, September 16, 2017). Plastina, A., A. Johanns and O. Massman. WebIn Table 5, the 1,000 bushel grain cart is assumed to be used on 1,900 acres. From 2018 to 2019, combined driver wage and benefits decreased from 77.6 cents per mile to 69.3 cents per mile. 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The economic cost for combining corn and soybeans is based on ownership of a 470 horsepower combine with a 35-foot grain head and a 12-row corn head used to harvest 1,500 acres of corn and 1,000 acres of soybeans. DRYING RATES WILL BE APPLIED TO WET BUSHELS. Hauling grain from the farm to MRGAs Casselton terminal* 0-20 miles to terminal. Schnitkey, G., K. Swanson and N. Paulson. That said, a local elevator is always good to have around for the larger farmers who rent smaller fields in remote areas. WebFrequently, harvesters include an additional charge per bushel to customers with high yields. WebCustom Trucking Freight Rates. Unfortunately, both locations require significant investments to maintain proper services, and there is simply not enough volume for us to be able to support that decision.. Both locations will continue to service the communities by way of their agronomy sales. Net wheat export sales were 0.617 mmt, up 38 percent from the previous week. Also included are state level 2016 average rates, 2020 rates as a percent of 2016 and historical comparisons back to 1995 for selected operations. The American Transportation Research Institute (ATRI) recently released a study analyzing detailed trucking costs from 2008 to 2019. The estimated machinery costs can also be useful when determining what equipment has the greatest economic return to the farm as compared to what it would cost to outsource the associated task. Schnitkey, G., K. Swanson, C. Zulauf, N. Paulson and J. Coppess. farmdoc daily(12):97,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,June 29, 2022. Given PLCs performance, the 15% of soybean acres enrolled in PLC seems high. As such, periodically evaluating whether owning or out-sourcing combining is prudent, particularly at the point where a combine needs replacement. Going forward, he said more troubles could still be at hand for producers not just in Clay County, but across the country as the cost of inputs are projected to increase for 2022 and perhaps 2023, with no guarantee that crop prices will match these costs. For the week ending December 10, total inspections of grain (corn, wheat, and soybeans) for export from all major U.S. export regions totaled 3.6 million metric tons (mmt). Green Damage Unlike the farmdoc machinery cost estimates which represent actual economic cost of performing the harvest operation, the custom rate survey reports actual rates expected to be charged or paid in 2020. 2019: Wet weather impacted yields over much of the Midwest in 2019. Schnitkey, G., J. Coppess, N. Paulson, C. Zulauf and K. Swanson. Total grain inspections were down 10 percent from the previous week, up 37 percent from last year, and up 34 percent from the 3-year average. Nafziger, E. "Issues as Harvest Approaches." ]j0IGH#wC.Sr>82:8wN|f%E"a;D"Wt(@=X( \.q5;%z_wloyWb}AE,m/BjE&fRAM.Bv @[o|vwvf^oVku8fj6JPKjU :tP`&j*IUNlJ9&7&d0i[wISndSU{uq^r[nYOa!6F.5afU&Emv]erbxbkDJKN0ry)G-uIY)7Z2?vjvnsU|?J(-I7c!J[r=,cup,x{CE~r+/OZ3$|my7Mw)Gn@XI 7c S] ` c1`^>c ic9t{yQ replacedby_title | Is Replaced By - Title, hastranslation_title | Has Translation - Title, usageconsiderations | Usage Considerations. For the week ending December 12, 703 grain barges moved down river181 barges more than the previous week. Infested 10 cents/bushel Recently released crop budgets (farmdoc daily, August 4, 2020) project losses for corn and soybeans on Illinois farms, given current assumptions for 2021. }Q~;O@4miP5BE7ymQwE#w,WH%)Q [C\mi@6V+27[g*@KU2+%xB.>^dfwWkrqr?nefuL The decision to invest in more grain storage units on their own farms is a weighty one. For the week ending December 12, barge grain movements totaled 1,120,459 tons. Despite the drop in grain inspections, total rail deliveries of grain to U.S. ports remained strong; increasing 122 percent from last year and increasing 64 percent from the 3-year average in the last 4 weeks. Sealed grain storage must be paid when the warehouse receipt is issued. 4 0 obj Based on the combined fertilizer and fuel cost increases, cash costs increased $0.58 per bushel (from $2.28/bushel to $2.86/bushel) for the dryland corn budget using a 145-bushel yield and $0.66 per bushel, increasing from $2.16/bushel to $2.82/bushel for the irrigated corn budget with a 245-bushel yield. farmdoc daily(13):71,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,April 18, 2023. Farms that own a grain drying and storage facility may have additional incentive to do all harvest operations themselves. With many factors that vary by farm and year, it can be difficult to determine the best approach for harvest operations from a cost management standpoint. Under the 2018 Farm Bill, PLC provides payments when the market year average (MYA) price is below the effective reference price, which can be above the statutory reference price.
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