The decision to invest in more grain storage units on their own farms is a weighty one. Here are some of ags biggest pageants, Timber fumigation plans in rural West Virginia spark backlash. The other alternative is ARC at the individual farm level (ARC-IC). "2014 Farm Bill: The Supplemental Coverage Option." The American Transportation Research Institute (ATRI) recently released a study analyzing detailed trucking costs from 2008 to 2019. = 28). endstream endobj 2887 0 obj <>stream Guidelines are available here. Other grades subject to market conditions, Moisture 1.4% shrink/half percent of moisture from 13.1 15.0% The February price for all wheat, at $9.17 per bushel, is 69 cents higher than January and $3.34 higher than February 2021. farmdoc daily(9):178,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,September 24, 2019. <> Based on survey results, it would be possible to hire a custom operator well below the economic cost of owning and operating. Thats the main reason Im renting out my ground and quitting, said Rubeck, owner of 300 acres. These beans will be tested and segregated at delivery. for each "other oilseed" Marketing assistance loans for the 2020 barley, canola, crambe, flaxseed, oats, rapeseed, sesame seed, and wheat crops are available through March 31, 2021, and for the 2020 corn, Topflight Grains Vision: To become Illinois best cooperative measured in customer satisfaction, volume, storage, revenue, and pride. All grain delivered during the harvest period will be stored each Thursday evening unless prior arrangements have been made. 2.0% shrink/half percent of moisture above 15.0% A farmer evaluating costs and returns may consider whether to own a combine versus outsourcing the task. Wheat: To trigger in 67% of the years, soybeans statutory reference price would have to be above $10.10, 20% higher than the current statutory reference price. At $6.50 that would be 175.50 - 60 for fuel. 3.5 cents per point of moisture, per bushel, removed above 24.0%, split on half points. Figure 3 shows payments for the type all or non-irrigated series for each county with an ARC-CO benchmark. Given all that, its increasingly problematic for producers under about 1,500 acres to handle the increased costs associated with trucking grain an extra 20 to 40 miles, let alone finance extensive capital improvements such as bins on their own farm, he said. Monticello, IL 61856, 1998-2023 Topflight Grain Cooperative. endstream endobj 2886 0 obj <>stream $2.50 per bushel: Oats: $2.00 per bushel: Soybeans: $6.20 per bushel: Other Oilseeds: $10.09 per hundredweight (cwt.) And farmers may find the optimal order requires switching back and forth between corn and soybeans multiple times. As corn price increases the moisture at which it becomes profitable to start harvest increases. For soybeans, the statutory reference price remains at $8.40 per bushel. DRYING RATES WILL BE APPLIED TO WET BUSHELS. farmdoc daily(10):20,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,February 4, 2020. Web4.0 cents per point of moisture, per bushel, removed from 19.1 24.0%, split on half points. 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. This is particularly problematic for farmers who cash-rent their ground for a fixed price. For example, increasing all crop reference prices by 5% would benefit those crops already having a higher chance of receiving PLC payments at current reference price levels, exacerbating the budgetary impacts of such a change. 4 0 obj &iyxuaAa[@&w,mZ2~_ns5F|>&OaBjM0ki]Qj)-6S3MVP7d\3U:>mfSWMPE>6`cd90fbA@b6n!-x LN=9g]Lzt3@W.SD;.K7Q? SCO is a crop insurance product providing county coverage above farm-level coverage (see farmdoc daily, February 27, 2014). WebCost per bushel is useful when producers are comparing marketing alternatives. Plastina, A., A. Johanns and O. Massman. 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. Growers receiving $6.00 per bushel only need to have an 8% harvest loss to pay for drying costs of $0.50 per bushel. Study: Keeping corn from frequenting the phosphorus buffet line, Ind. farmdoc daily (10):143, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, August 4, 2020. "The Case for Looking at the ARC-IC (ARC-Individual) Program Option." Moreover, raising one crops reference price while keeping the other crops statutory references prices fixed could be politically problematic. The following comparisons are relevant to farms who already own newer harvesting equipment or those who are considering a purchase while aiming to manage costs effectively. Schnitkey, G., K. Swanson, C. Zulauf, N. Paulson and J. Coppess. 2 cents/lb below 51.0, Sour 5 cents/bushel This amounts to a six-month commercial rate of from 15 cents (9 + (2 x 3 mo.) In general, cash costs per bushel of corn for both dryland and irrigated budgets were projected lower for 2021, primarily due to lower fuel costs, with a dryland corn average cost of $2.34 per bushel and $2.28 per bushel on irrigated corn. WebFor the week ending February 6,unshipped balancesof wheat, corn, and soybeans totaled 22.7 million metric tons (mmt). 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. The intent of the survey is to provide producers with additional information to help with their farm management decisions. The desirable moisture level for harvested soybeans is 13% moisture. Absolutely, he said. 3 cents a point from 10.1% to 15.0% farmdoc daily(9):173,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,September 17, 2019. Oats: For soybeans to have payments in 22% of the years like oats, the soybean statutory reference price would have to be above $8.57, the MYA price in 2019. With a record demand for Chinese grain due to global weather issues and the COVID-19 quarantine, compounded by international supply chain snarls, corn prices per bushel were $5.77 at Novembers end with soybeans at $12.64. 1 0 obj Rates for baling <> The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. Custom Rates for Grain Sorghum Harvest, 2018, by District District 21-30 miles to WebSales Tax Rate (plus applicable district taxes) Prepayment of Sales Tax Rate (per gallon) 10/2022 06/2023. From 2014 to 2019, MYA prices for soybeans were below the ARC-CO benchmark price (see Figure 1). 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. = 15) to 28 cents (16+ (4x 3 mo.) Once soybeans have reached maturity, plants may still be too wet and green to harvest and grain moisture still above an acceptable level. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. WebIn Table 5, the 1,000 bushel grain cart is assumed to be used on 1,900 acres. The Iowa State custom rate survey breaks this down based on hauling to farm storage versus to market, and various distances. %PDF-1.7 % Included for each operation are the number of reports, range, most frequently reported rate and the average rates. The 2021 season may well be remembered as one where irony was the top crop harvested. A comparison of the two sets of rates provides a baseline that can be used to evaluate costs of owning equipment and performing harvest operations versus outsourcing. Costs (total, dollars per bushel, or custom rate equivalent in dollars per mile) can be compared between The per-hour charge includes one man, vac-u-lator machine, and fuel. Most of the farmers in the 1,500- to 1,800-acre category already truck greater distances depending on prices. Machinery Costs: Harvest Operations. farmdoc Business Management, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, August 2019. Sealed grain storage must be paid when the warehouse receipt is issued. "ARC-IC: Payment Examples and Revised 2019 ARC-IC Payment Calculator." Net soybean export sales were 0.569 mmt, up 40 percent from the previous week. The streamlining measure will allow States to quickly repair highways and interstates needing immediate attention. WebAlberta custom rates survey : grain harvesting operations. 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. But this is just one more problem in whats been a complicated season across the world. The 2018 flat rate charge per acre was $26.10, up $0.43 from 2016. This represents a 27-percent decrease in outstanding 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. The effective reference price is capped at 115% of the statutory reference price or $9.66 for soybeans (8.40 x 1.15 = 9.66). U?D.s?f{O*lIBCy=r>mbI0|Y"!w' 6@GLuG}iUw49"ZS..a2dB65*I"X^B^UGaHWMql@a=z!}"c?| o7}0FJ@6c\'"f{RcZ5s5D["}%g=_{hg@ID?a>UxZ`EG,E>qFlsLwt:dw{7Un66/`rk/@I_x7@wU:;N/(=`W@6A jyBi%tRbtBwu?]W7/tTCXl E:TW+]-fHyN%N8A_v\ cwiLXMC Qu;$t4))pvtA&H8):D/=q!Gm,$\X2:H XyDXBNt$(9b4qRG5}sNfl-Zzq:{F$f/ZeA]FZ D2ZidI;!OQE]u( - ! 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. For a detailed statement, please see the University of Illinois Copyright Information and Policies here. 0-20 minutes load time @ $.13/bu 21-40 minute load time @ $.14/bu 41-60 minute load time @ $.16/bu. This has been the situation for soybeans compared with other crops over the life of the ARC and PLC programs. Are Crop Insurance Net Indemnities and Commodity Program Payments Countercyclical? 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. The problem in ag, he said, is smaller producers continue to lose out and at some point, there might not be any at all. 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. This was $257 more than last week and $730 more than this week last year. Also included are state level 2016 average rates, 2020 rates as a percent of 2016 and historical comparisons back to 1995 for selected operations. 2885 0 obj <>stream The views or opinions expressed in this article are those of the author and may not reflect those of AGDAILY. As shown in Figure 3, ARC-CO made payments in some counties nationwide. More beneficial improvements likely come from changes to ARC-CO or the effective reference price mechanism. "Cost Management: Tillage Operations." Unlike some field operations which may be performed on only a portion of acres, harvest operations will cover all harvestable acres, generally all planted acres on a farm. 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. And as all producers know, those figures dont include labor or other soft costs. 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). This was 36 percent more than the previous week and 58 percent more than the same period last year. Annually, Iowa State University surveys those who hire and/or perform custom farm services and compiles a report of results. As such, periodically evaluating whether owning or out-sourcing combining is prudent, particularly at the point where a combine needs replacement. You can see more of his work athttp://www.boycegroupinc.com/. Based on the above comparisons, the following suggestions result: Further note that that these decisions are longer run in nature as well. The equipment needed to harvest can be costly to own and operate, particularly when purchased new or relatively new. Whats Wrong with the Current Waters of the U.S. Rule? 3.5 cents per point of moisture, per bushel, removed above 24.0%, split on half points DRYING RATES WILL BE APPLIED TO WET BUSHELS DRYING farmdoc daily(12):97,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,June 29, 2022. Grain storage was going to be tight, and many producers around the country were already investing in their own grain bins. I am getting 1/2 penny per bushel per mile. Raising soybeans reference price to this level would have large budgetary impacts for the next Farm Bill. 2 0 obj The lowest MYA prices of $8.48 in 2018 and $8.57 in 2019 occurred during the trade war with China. Within the next 10 days (starting December 11), 66 vessels were expected to be loaded50 percent more than the same period last year. The estimated machinery costs can also be useful when determining what equipment has the greatest economic return to the farm as compared to what it would cost to outsource the associated task. For the week ending December 12, barge grain movements totaled 1,120,459 tons. WebFrequently, harvesters include an additional charge per bushel to customers with high yields. 5 cents a point above 15.0%, Foreign Material 2 cents each point from 3%-5% ]j0IGH#wC.Sr>82:8wN|f%E"a;D"Wt(@=X( \.q5;%z_wloyWb}AE,m/BjE&fRAM.Bv @[o|vwvf^oVku8fj6JPKjU :tP`&j*IUNlJ9&7&d0i[wISndSU{uq^r[nYOa!6F.5afU&Emv]erbxbkDJKN0ry)G-uIY)7Z2?vjvnsU|?J(-I7c!J[r=,cup,x{CE~r+/OZ3$|my7Mw)Gn@XI 7c S] ` c1`^>c ic9t{yQ On 1100 that would be 33 bushel X 6.50 that would be 215 -60 for This profit maximizing decision will vary from farm to farm. For the week ending December 10, 45 oceangoing grain vessels were loaded in the Gulf41 percent more than the same period last year. From 2018 to 2019, combined driver wage and benefits decreased from 77.6 cents per mile to 69.3 cents per mile. Sour 10 cents/bushel The Federal Highway Administration (FHWA) published a notice of proposed rulemaking to give States more flexibility in setting design standards for highway projects. Brian Boyce is an award-winning writer living on a farm in west-central Indiana. "The Price Loss Coverage (PLC) Option in the 2018 Farm Bill." This results in grain cart overhead of $3.21 per acre ($6,096 yearly costs from Table 4 divided by 1,900 acres). Custom rates survey : grain harvesting operations, Grain--Harvesting--Statistics--Periodicals, identifier-ALIS-catno | ALIS catalogue number, identifier-NEOS-catkey | NEOS catalogue key. There were 1,022 grain barges unloaded in New Orleans, 13 percent higher than the previous week. 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. This was 2 percent lower than last week, but still represented a significant increase in outstanding sales from the same time last year. 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. Also, hiring a custom operator for hauling grain can be beneficial for farms who do not have many operators and may be unable to hire a qualified operator for only the harvest season. Rubeck said he made it a point to arrange for his land to be farmed next year by another family farmer, who may be able to pick up more ground yet as a result of this move. 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. WebHarvesting, Drying, and Hauling Grain (continued) Average Charge Median Charge Range Number of Responses Drying corn (includes fuel, electricity, labor) - continuous flow Having a combine adequately sized for acres to be harvested is an important consideration when making harvest equipment decisions. Farm Show 2020, By Brian Boyce Published: December 02, 2021. "2020 Iowa Farm Custom Rate Survey." The three southern crops peanuts, long-grain rice, and seed cotton paid in the most years: peanuts at 100% of the time, long-grain rice at 89% of the time, and seed cotton at 78% of the time. For farms with fields in multiple locations, optimal harvest timing may not be reached in a logistical order. From 2019 to 2022, the average cropland for grain production value increased 128%, from $1,875 to $4,271 per acre. Because of the capital investment needed for harvesting equipment, the decision on how to manage harvest operations will generally be a long-run decision. Schnitkey, G., C. Zulauf, R. Batts, K. Swanson, J. Coppess and N. Paulson. nonGMO beans enrolled in the nonGMO program must be delivered to contracted destination. This can be a way to reduce capital demands and cover one of the necessary harvest job tasks without the added labor costs of an additional farm operator. In 2018 the extra charge was averaged $0.226 per bushel of grain sorghum for yields greater than 48 bushels per acre. I think it is a good time to borrow rate-wise, with some precautions. 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. Farms that own a grain drying and storage facility may have additional incentive to do all harvest operations themselves. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. The following modifications would provide more targeted benefits to soybean producers: Both modifications would result in benefits (larger or more likely program payments) when market prices move further above statutory reference price levels. F. Raising soybeans statutory reference price of $8.40 to levels comparable to other crops will be difficult. }Q~;O@4miP5BE7ymQwE#w,WH%)Q [C\mi@6V+27[g*@KU2+%xB.>^dfwWkrqr?nefuL Given the close comparison of economic costs to custom rate costs, it likely would not make sense for a farm to hire a custom combine or grain cart if those pieces of machinery are already owned unless the farm plans to make a long run decision to change approach and sell the equipment. The economic cost of harvesting corn is $37.61 per acre, within $2 per acre of the custom rate average and median. Given PLCs performance, the 15% of soybean acres enrolled in PLC seems high. 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Consider timing and the resulting impacts on costs and revenue that are expected to determine the best fit for the farm. Ceres Solutions does offer grain services in partnership with Gavilon Grain in Clay Countys next-door neighbor Vigo Terre Haute, 22 miles from Brazil. ", PLC and ARC-CO for Soybeans: Payments and Perspectives, 2014 Farm Bill: The Supplemental Coverage Option, The Price Loss Coverage (PLC) Option in the 2018 Farm Bill, ARC-CO: Background, Payments, and Perspectives for Corn, ARC-IC: Payment Examples and Revised 2019 ARC-IC Payment Calculator, The Agricultural Risk Coverage County Level (ARC-CO) Option in the 2018 Farm Bill, The Case for Looking at the ARC-IC (ARC-Individual) Program Option, Effective Reference Price Past and Future, Farmland Prices in Brazil More than Doubled in the Last Three Years, Department of Agricultural and Consumer Economics, Department of Agricultural, Environmental and Development Economics. However, mature soybeans can dry quickly, in a matter of hours, rather than days. endobj The data presented in this report was obtained by contacting producers and custom operators and thus represent actual charges. Percentages were calculated from PLCs inception in 2014 to 2022. farmdoc daily(13):71,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,April 18, 2023. 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. The machinery cost estimates include overhead, fuel, and labor. 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 ARC-CO payments are capped at 10% of benchmark revenue. Web2021 Indiana Farm Custom Rates By Michael Langemeier The rates reported in this publication were compiled from questionnaires received from farmers, farm owners, farm ,`~SH"XN Still, that average was 6 cents higher than in 2016, the last time the freight market softened. The economic cost of harvesting soybeans is $32.70 per acre, nearly $3 per acre below the custom rate average and median. On a 900 bushel load, that would give me 27 bushel. For corn, once the crop has reached maturity the desirable moisture level for grain at harvest is 15%. This Department of Crop Sciences, University of Illinois at Urbana-Champaign, September 16, 2017. $0.330. Figure 3 shows three maps reporting ARC-CO payments on a per base acre basis. But with the spike in fertilizer prices this year and the increased certainty of higher costs next year, the prospect of a big capital expenditure on the grounds could be risky. Very low payments would be triggered if prices were just above $8.57. The economic costs of owning and operating a grain cart exceed even the maximum reported custom rate for corn, and are near the upper end of custom rates reported for soybeans. They are not to be interpreted as the rates you must charge or pay. These are record times that were in front of, he said, noting the yields and prices. Keep in mind that for the buyer, harvest costs for silage would be different than harvest costs for grain. Sporadic counties across the country also received payments. Wheat triggered in 67% of the 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, Schnitkey, G., N. Paulson, C. Zulauf and J. Baltz.