I WASN’T LYING, FARMERS AREN’T RICH

corn harvestWe had a great response to my article, “Are Farmers Rich?” from last month.  And then today, I read this article from the University of Illinois’ Farm Doc Daily that more or less confirms what I said.

“Corn returns in 2014 likely will be negative on many farms, with losses near $100 per acre on cash rent farmland in northern Illinois”

And if you’re even more interested in farmers, farming decisions, and whether or not farmers are rich, this is an interesting point:

“Average cash rent in central Illinois is near $300 per acre. At a $300 cash rent, farmers receive a return for corn equal to -$90 per acre ($210 operator and land return – $300 cash rent). The farmer return for soybeans equal $28 per acre ($328 operator and land return – $300 cash rent).

A 50% corn and 50% soybean is a common division of land between corn and soybeans. At a 50% corn and 50% soybeans, operator and land return equals $269 per acre (see Table 1). Overall, a $31 loss occurs for a farmer given a $300 cash rent. Without soybeans, the return would have been much larger.”

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Most of the time, farmers make more money on corn.  That their soybean crop will actually buffer their losses this year is unusual, but a welcome surprise for farmers losing $31 per acre in 2014.

For those of you that will click through and try to read the University of Illinois’ article, I realize that it can be complicated for non-farmers to understand.  Ask your questions in the comments and I will happily answer and explain anything I can!

Lindsaymitchell_lindsay Mitchell
ICGA/ICMB Marketing Director

If you liked this article, you’ll love ARE FARMERS RICH?

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