October 23, 2014

Illinois corn farmers to get less from their crops this year

Record high corn yields are expected to give northern Illinois corn farmers a gross revenue of US$808 per acre this year, US$292 less than the 2011-13 average of US$1,100, according to a University of Illinois-based analyst, Gary Schnitkey.

The 2015 average gross revenue is projected to be even still lower than the 2014 projected revenue.

Corn yields are projected at the record level of 220 bushels per acre while the projected corn price is US$3.40 per bushel, the lowest yearly price since 2008 when crop price averaged $3.01.

Schnitkey said government subsidies this year and in 2015 will be higher than those in 2006-13 but lower than the average in 2000-05, adding that government payments won't totally offset crop revenue decreases.

For the seven-year period 2007-14, gross revenue averaged US$938 per acre, or US$484 higher than the US$454 average in 2000-06. The higher gross revenues in 2007-14 can be mostly explained by the higher corn prices, Schnitkey said.

He said northern Illinois corn farmers were paid an average of US$2.31 per bushel in 2000-06, lower than the US$4.89 per bushel in 2007-13.

Corn prices averaged US$3.89 per bushel in 2009-11 compared with US$5.96 per bushel in 2010-12.