The University of Illinois’ economist Dr. Gary Schnitkey forecasts in his farmdoc daily article “Revenues Below $700 per Acre Possible with Corn in 2017” that gross revenues on corn acres for 2017 could “range from a low in the mid-$600 range to a high of over $900 per acre,” with the “reasonable expectation” of $741 per acre.
His analysis is based on historical data from Logan County, IL.
Certainly, before corn is in the ground, there is a considerable range of possible corn acre revenue. For this analysis, Dr. Schnitkey used $3.68 as a Market Year Average price which is the average over the 42 simulated years. He also considered an average yield of 190 bushels per acre.
You can adjust what you believe revenue could be for your farm by adjusting price up or down and bushels per acre yield up or down. The article provides more information on how to calculate what might be the case for your farm.
Dr. Schnitkey also factors in an average non-land cost of $530 per acre for corn. An additional average cash rent of $240 per acre results in a loss of $29 per acre for this simulation.
Actual revenues will depend on price and yield changes occurring this summer and fall. As always, planting progress, growing conditions, and demand changes will be of importance in determining revenues and incomes.
Read Dr. Schnitkey’s entire analysis using the link below.
Schnitkey, G. "Revenues Below $700 per Acre Possible with Corn in 2017." farmdoc daily (7):71, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, April 18, 2017.
Photo Credit: farmdoc daily