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South Central Iowa | Cost can vary greatly between producers. Iowa State University is one of our leading agricultural institutions so I will relay their estimated costs of production
Variable cost (no equipment payments or land payments) All USD:
Corn ~ $940/ha ($380/ac)
Soybeans ~ $540/ha ($220/ac)
Equipment payments can range from ~ $50/ha to $250/ha depending on the operator ($20-$100/ac)
Land rent or payments would be approximately $600 - $850/ha ($240-$350/ac)
So total cost for corn would be around $1,750/ha and soybeans would be $1,350/ha
Yields on land like that would be around 14.5 mt/ha on corn and 4.7 mt/ha on soy (230 bu/ac and 70 bu/ac, prime land)
So revenue might average $3.50 on corn and $8.00 on soybeans currently, per bushel. That would translate to $2,000/ha on corn and $1,380/ha on soybeans. So producers are making around $250/ha on corn currently and barely breaking even, $30/ha, on soybeans. There are those that make far more than that, and those who make less or lose money producing both crops. It just depends on their land and equipment situation, their costs, how they market, and how productive their soil is. My land is less productive than the average American farm, but it also costs less to rent or own and our inputs are a little cheaper than average. So everything depends. But generally:
US farmers are making more money on corn this year. That is a change from the last three where soybeans have been competitive or more profitable.
Well, we would agree on the environmental legislation, our government likes to tell us all sorts of things about what we should do as well. That's too bad to hear your crops suffered. We have an issue currently in the US corn belt with too much rain. It is very serious and ongoing, greatly inhibiting our planting progress. So price may continue going up, which might help benefit you as well, since most international corn and soybean trade is based off of the Chicago Market.
Edited by Conan the Farmer 5/19/2019 22:58
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