3 0 obj unloaded in New Orleans Contact Us February 20, 2020 endstream endobj 2886 0 obj <>stream On 1100 that would be 33 bushel X 6.50 that would be 215 -60 for The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. x][~]*I NmeufIdmN8Dr.f8uWGzu7rus/\gx7_O?5p /.WE_(n>yqK^.>E B&Jb;_? SCO is a crop insurance product providing county coverage above farm-level coverage (see farmdoc daily, February 27, 2014). "The Case for Looking at the ARC-IC (ARC-Individual) Program Option." Costs (total, dollars per bushel, or custom rate equivalent in dollars per mile) can be compared between Given PLCs performance, the 15% of soybean acres enrolled in PLC seems high. Clay County farmer and insurance agent Scot Rubeck said for him and a number of his neighbors, this will be the last growing season, and the lack of access to local grain elevators going forward is a major factor in that decision. Custom rates survey : grain harvesting operations, Grain--Harvesting--Statistics--Periodicals, identifier-ALIS-catno | ALIS catalogue number, identifier-NEOS-catkey | NEOS catalogue key. Harvesting before optimal timing can result in additional drying costs and harvesting after optimal timing can result in yield loss as the grain continues to dry and lose moisture. A seemingly comparable figure is the rate for hauling to market five miles away with an average and median at $0.10 per bushel, and rates ranging from $0.05 per bushel to $0.20 per bushel. Increasing the ARC-CO coverage level above 86% and/or the payment cap to over the current 10% of benchmark revenue. Combines are the largest cost machinery item on most Midwest grain farms. Im hearing a lot of that and Im seeing it, Litz said. 3 cents a point above 5.0%, Test Weight 1 cent from 53.9 51.0 2021 Indiana Farm Custom Rates - Purdue University Swanson, K., G. Schnitkey, N. Paulson, C. Zulauf and J. Coppess. :j|vM;W=&%7A[OE]7n []k The farmdoc economic cost estimate is set at $0.10 per bushel. Schedule of Rates - Goodwine Coop Are Crop Insurance Net Indemnities and Commodity Program Payments Countercyclical? "2020 Iowa Farm Custom Rate Survey." hY]oF+R}zwfg? Theres no way to really blame them for making a business decision based on the numbers, but he feels matter-of-factly that irrespective of the reason, the end result here will be more consolidation and fewer small farmers. Since 1975 Alberta Agriculture & Rural Development has annually surveyed custom rates and rental rates to provide information to farmers and custom operators. ARC-IC returned to its more typical 1% enrollment level in 2021 and 2022. farmdoc daily(9):203,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,October 29, 2019. A summary of costs for harvest operations from the farmdoc machinery cost estimates is shown in Table 1 next to the corresponding average, median, minimum and maximum custom rates from the Iowa survey responses. Yields had to be well below benchmark yields before ARC-CO would make payments. WebFLAT RATE COMBINING AND HAULING fuel 0.30 0.30 COMBINING AND HAULING CORN fuel Combining and hauling CornReported as Combination of per Acre rate, hauling, plus overage Rate per Acre Hauling per Bushel Overage Rate per Bushel Overage charged on yields over: ResponsesAverageMinimumMaximumMost Common 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. Moreover, the $8.57 MYA price for 2019 was below the $9.63 benchmark price. Do I think guys are getting out because the elevators are shutting down? And as all producers know, those figures dont include labor or other soft costs. When spread over the same acres used to calculate farmdoc economic costs, the total average cost for custom combining is $90,650 (1,500 x $36.70 + 1,000 x $35.60). This has been the situation for soybeans compared with other crops over the life of the ARC and PLC programs. Each county either has 1) one yield series for All of the crop or 2) two series for non-irrigated and irrigated yields. This was an 11-percent increase from the previous week, 21 percent more than last year, and 16 percent more than the 3-year average. USDA Releases Report Showing Manures Use By Crop, U.S., Five Other Ag Exporting Countries Say India Is Vastly Underreporting Its Wheat, Rice Subsidies, Ag Credit Tightens with Rising Interest Rates and Following Bank Collapses, Ideas Big and Small: Create a Culture of Creativity on Your Farm, Dust Bowl 2.0? These high percentages can be attributed to the fact that PLC made no payments on soybeans since its inception in 2014, and expectations for the marketing year average price to remain well above the reference price at the time of enrollment for both the 2021 and 2022 crop years. Both locations will continue to service the communities by way of their agronomy sales. Since 1975 Alberta Agriculture & Rural Development has annually surveyed custom rates and rental rates to provide information to farmers and custom operators. Foreign Material All foreign material in excess of 1.0% will be deducted from gross weight and will not be paid. The lowest MYA prices of $8.48 in 2018 and $8.57 in 2019 occurred during the trade war with China. PLC and ARC-CO are two choices for receiving commodity title payments. Included for each operation are the number of reports, range, most frequently reported rate and the average rates. Pods in Beans 10 cents/bushel The problem in ag, he said, is smaller producers continue to lose out and at some point, there might not be any at all. Figure 3 shows three maps reporting ARC-CO payments on a per base acre basis. Outsourcing the task would reduce capital costs and may be a cost minimizing solution for some farms. Meanwhile, the smaller farmers will be facing a much costlier barrier, and what elevators do wind up receiving the grain will see their own costs rise due to longer lines. If you dont have a big cart and at least 2 combines, I charge $100/hour from the time you tell me to be there, until I get either home or to my next load. At $6.50 that would be 175.50 - 60 for fuel. hTj0_%o&PlHK..R=P4Dn99,,!9wqNV+ZDKAPh `'!OW5cF+mQR The charge for use of the vac-u-lator for farm-stored grain (or grain mishaps) is $100/hour with a minimum of $200. grain elevator's closure the last But with a recent farm-related injury, young children at home, and a successful farm insurance brokerage to run, the added prospect of hauling his grain nearly 40 miles instead of 10 was just too much. The most significant appreciation in the land market in Brazil occurred in areas used for grain production, followed by sugar cane and coffee, according to the S&P Global Commodity Insights report (see Figure 1). This was 2 percent lower than last week, but still represented a significant increase in outstanding sales from the same time last year. Shane Litz, vice-president and commercial loan officer at Terre Haute Savings Bank, said the local elevators decision to close its grain business will impact farmers throughout the region. To obtain a payment in 64% of the years, the average payment rate across all other crops, soybeans statutory reference price would have to be $10.10, 20% higher than the current level. Brown, G. Schnitkey, K. Swanson, J. Coppess and N. Paulson. y_|HNL-sGIMm5!JPNJ MF ]&>e\dr|Q4h~4(. Schnitkey, G., K. Swanson and N. Paulson. Computing a Grain Storage Rental Rate &iyxuaAa[@&w,mZ2~_ns5F|>&OaBjM0ki]Qj)-6S3MVP7d\3U:>mfSWMPE>6`cd90fbA@b6n!-x LN=9g]Lzt3@W.SD;.K7Q? Moreover, raising one crops reference price while keeping the other crops statutory references prices fixed could be politically problematic. According to the study, from 2018 to 2019, the average marginal cost per mile incurred by motor carriers decreased 9.3 percent to $1.65. 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. As a result, the MYA had to be below the $8.40 statutory reference price for PLC to pay since its inception in 2014 through 2023. replacedby_title | Is Replaced By - Title, hastranslation_title | Has Translation - Title, usageconsiderations | Usage Considerations. Likewise, as grain prices decline the target moisture for harvesting corn decreases. The rate from PNW to Japan was $23.25 per mt, unchanged from the last available rate on December 3. The total cost per bushel of soybeans is projected at $8.72 for non-herbicide-tolerant beans at 56 bpa, according to the report.. Based on the above comparisons, the following suggestions result: Further note that that these decisions are longer run in nature as well. Grain transportation costs can be divided into two categories: ownership costs, which occur regardless of how much the truck or tractor is used, and operating costs, which vary directly with the number of miles driven. Also called fixed costs, include depreciation, interest, insurance, and licenses. farmdoc daily(4):37,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,February 27, 2014. However, it may be a challenge to find a low cost custom harvester in some areas and this takes control over timing out of the farmers hands. For a detailed statement, please see the University of Illinois Copyright Information and Policies here. "Effective Reference Price Past and Future." nonGMO beans enrolled in the nonGMO program must be delivered to contracted destination. The economic cost of harvesting soybeans is $32.70 per acre, nearly $3 per acre below the custom rate average and median. As a result, PLC has yet to be an effective risk management program for soybeans. Kansas Custom Rates 2018 Biodiesel, waste vegetable oil (wvo), and USDA Announces 2020 Loan Rates for Wheat, Feed Grains, Oilseeds, Rice Recently released crop budgets (farmdoc daily, August 4, 2020) project losses for corn and soybeans on Illinois farms, given current assumptions for 2021. Some farms may have to comply with special requirements of land or business owners. Musty 5 cents/bushel 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. Rubeck harbors no ill will toward the cooperative and said hes always liked their employees. This decision may also be dependent on the amount of fall fieldwork and if those operations are performed by the farmer. The other alternative is ARC at the individual farm level (ARC-IC). Comments can be submitted until December 24. Ive heard more small farmers say theyre not going to continue farming after this year than any other in my 15 years in the ag business, Rubeck said. In some areas it may be difficult to outsource, either based on availability of a custom operator, timeliness of completing the task, or not aligning properly with how the crops were planted. ARC-CO is a revenue program that makes payments when county revenue is below 86% of benchmark revenue. Corn: To trigger in 56% of the years, soybeans statutory reference price would have to be above $9.40, 16% higher than the current statutory reference price. Too much for he and four surrounding neighbors he named right off the top of his head, each of whom farm in the 200- to 300-acre range. Schnitkey, G., C. Zulauf, R. Batts, K. Swanson, J. Coppess and N. Paulson. 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% And American producers responded in kind this year, with both corn and bean production up 3 percent and 5 percent, respectively, from 2020. Industrial Hemp Planting and Production 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. If kernels lose moisture without changing size or shape to become more dense, yield loss occurs (see Nafziger, October 3, 2003). WebFor example, state average custom rates for harvesting corn and soybeans per acre increased to $41.63 and $40.18 from $39.34 and $37.29, respectively, two years ago. As corn price increases the moisture at which it becomes profitable to start harvest increases. WebSales Tax Rate (plus applicable district taxes) Prepayment of Sales Tax Rate (per gallon) 10/2022 06/2023. The decision to invest in more grain storage units on their own farms is a weighty one. The lack of control of harvest timing may result in added costs such as drying or lower revenue due to yield loss, as discussed previously. It is generally most cost effective in the long-run to own and operate a combine and grain cart for corn and soybeans, but important that equipment to be scaled appropriately to the farm. endobj eA@ ct1(qOJ=_V! , ypVCD_<9tZA O.kkJGQGMFR'/.~i*Aiqt/WOtOym]0|xC4K^tyQ4s#s0 %q04#7CT;X8;2K(oxFuI`=Q)6E;*pQi3p#34vAGN9#24X ,FKh`i44Y%ml'Y8o9(B>S{/ t How the Drought is Washing Out Hopes of Texas Cotton Production This Year, Indias Rice Subsidies Under Fire at WTO by U.S., Thailand, and Others, After Price Shocks, Grain Prices Fall Back to Pre-War Levels, Food Inflation Concerns Persist, 9 Charts to Analyze from the 2023 FAPRI Baseline, Farmland Partners Sells 862-Acre Arkansas Farm, Weekly National Posted Prices for Peanuts, Big Shift in American Farm Policy Farming as a Low-Carbon Energy Producer. Infested 10 cents/bushel With crop production and prices at levels that should have had folks excited and optimistic, many in the field are still weeding through problems great and small related to the COVID-19 pandemic. The desirable moisture level for harvested soybeans is 13% moisture. For example, the cost of running a 320 horsepower combine on a 2,000-acre farm is $39.70 per acre for corn, equal to the cost of running a 540 horsepower combine on a 2,400-acre farm. The 2018 flat rate charge per acre was $26.10, up $0.43 from 2016. When combines or grain carts are used on fewer acres than those referenced, the cost of operation rises. Grain Hauling Cost Calculator Instructions Aside from the higher costs, it may also be difficult to find a custom operator for the grain cart only. As a result, ARC-CO payments occurred in many counties. Several options exist for reducing non-land costs, such as previously covered tillage related costs (farmdoc daily, August 18, 2020) and this article focusing on harvest related costs. Corn Overview - CME Group Grain storage was going to be tight, and many producers around the country were already investing in their own grain bins. 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. farmdoc daily(12):97,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,June 29, 2022. A custom harvester is likely to prefer progressing by physical location and crop. Rates For the week ending December 12, 703 grain barges moved down river181 barges more than the previous week. 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. Farm Show 2020, By Brian Boyce Published: December 02, 2021. Unlike other field operations which are typically reported on a per acre basis, grain hauling is generally factored on a per bushel basis. These changes could also potentially benefit other crops if their market prices increase relative to their statutory reference prices in the future. Wheat triggered in 67% of the years. Grain hauling costs vary greatly depending on the distance to the storage location, the type of storage location, and the time it takes to unload, among other factors. Schnitkey, G., K. Swanson, C. Zulauf, N. Paulson and J. Coppess. 2885 0 obj <>stream Alberta 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%. A seemingly comparable figure is the rate for hauling to market five miles away with an average and median at $0.10 per bushel, and rates ranging from $0.05 per Production Another elevator offers this service at Shelburne in Sullivan County, which is about 22 miles from Clay City. More beneficial improvements likely come from changes to ARC-CO or the effective reference price mechanism. Planting and drilling rates appear to have increased approximately 7% to 10%, and harvesting rates range from 3% to 25% higher in 2020 from 2018. The goal is to report what is being charged, not what should be charged. Percentages were calculated from PLCs inception in 2014 to 2022. The only good news he could see is that the decision to close might create an opportunity for a smaller organization to perhaps open an elevator service to fill the gap. We show payments for soybeans from Price Loss Coverage (PLC) and Agriculture Risk Coverage at the county level (ARC-CO) to aid in the deliberations over the next farm bill. This is subject to change with market conditions. The effective reference price is capped at 115% of the statutory reference price or $9.66 for soybeans (8.40 x 1.15 = 9.66). For the week ending December 3, unshipped balances of wheat, corn, and soybeans totaled 57.8 million metric tons (mmt). Corn production for 2021 is forecast to exceed 15 billion bushels, with beans at 4.45 billion, and average yields of 176.5 and 51.5 bushels per acre, respectively. Nafziger, E. "Issues as Harvest Approaches." University of Tennessee system These are record times that were in front of, he said, noting the yields and prices. Sealed grain storage must be paid when the warehouse receipt is issued. Eliminating the requirement to select PLC for acreage to be eligible for the Supplemental Coverage Option (SCO) insurance program also is warranted. = 28). And then in August, farmers in west central Indiana learned that news that one of the states leading cooperatives was going to cease accepting grain at two locations. With a larger machine harvest could progress faster, but the cost is an extra $6 per acre. Keep in mind that for the buyer, harvest costs for silage would be different than harvest costs for grain. Schnitkey, G., C. Zulauf, K. Swanson, J. Coppess and N. Paulson. Zulauf, C., B. 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. That said, a local elevator is always good to have around for the larger farmers who rent smaller fields in remote areas. 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, Swanson, K., G. Schnitkey, N. Paulson, C. Zulauf, J. Coppess ", CFAP Payments to Date and Possible Future Ad Hoc Farm Payments, Department of Agricultural and Consumer Economics, Department of Agricultural, Environmental and Development Economics.