In this article published last week, University of Illinois expert Dr. Gary Schnitkey predicts significantly lower net incomes for Illinois grain farms than in 2010-2014.
Average 2015 net income for grain farms in Illinois is projected at around $15,000 per farm.
Within the article he explains that although 2015 commodity prices are above commodity prices in 2014, higher yields were realized in 2014 and grain for 2013 was held over and marketed in 2014 in many cases giving farmers a bump up over current predictions for this crop year.
Most interesting though, was an examination of the most recent economic downturn for grain farms, in 2000-2005, compared to 2015. Schnitkey found that, “non-land costs for corn have increased 224% from $256 per acre average from 2000-05 to $578 per acre in 2015. Cash rents have increased 205% from $139 per acre to a projected $286 per acre. These cost increases are the primary factor offsetting higher commodity prices, leading to lower projected incomes in 2015.”