For the week ending December 12, 703 grain barges moved down river181 barges more 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. Growers receiving $6.00 per bushel only need to have an 8% harvest loss to pay for drying costs of $0.50 per bushel. 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. Custom trucking is generally less challenging to hire than other harvest operations. Male Posted October 8, 2021 16 hours ago, TeachersPet1066 said: "ARC-IC: Payment Examples and Revised 2019 ARC-IC Payment Calculator." WebTable 1: Grain Transport Cost Indicators (xlsx) - Weekly changes in truck, rail, barge, and ocean freight rates using diesel prices, nearby secondary rail market rates, Illinois barge eA@ ct1(qOJ=_V! , ypVCD_<9tZA O.kkJGQGMFR'/.~i*Aiqt/WOtOym]0|xC4K^tyQ4s#s0 %q04#7CT;X8;2K(oxFuI`=Q)6E;*pQi3p#34vAGN9#24X ,FKh`i44Y%ml'Y8o9(B>S{/ t Most of the farmers in the 1,500- to 1,800-acre category already truck greater distances depending on prices. These estimates are intended to represent costs associated with buying new machinery and owning the machinery for seven years (see Machinery Costs: Harvest Operations). % To get to the average historical payment performance of the eight other large program crops, soybeans reference price would need to increase to $10.10, an increase of 20%. 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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. Given PLCs performance, the 15% of soybean acres enrolled in PLC seems high. We calculated the number of times PLC triggered payments for the nine program crops with at least 2 million base acres. Very low payments would be triggered if prices were just above $8.57. "2014 Farm Bill: The Supplemental Coverage Option." nonGMO beans enrolled in the nonGMO program must be delivered to contracted destination. But with a recent farm-related injury, young children at home, and a successful farm insurance brokerage to run, the added prospect of hauling his grain nearly 40 miles instead of 10 was just too much. 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 bushel to $0.20 per bushel. According to the study, from 2018 to 2019, the average marginal cost per mile incurred by motor carriers decreased 9.3 percent to $1.65. For example, if the custom rate for chopping, hauling and storing silage is $10.00/ton, the value of the standing silage to the buyer is reduced to $41.23 - $10.00 = $31.23 per ton, or $624.60 per acre. I dont feel really good about 2022, Litz said. Recently released crop budgets (farmdoc daily, August 4, 2020) project losses for corn and soybeans on Illinois farms, given current assumptions for 2021. The other alternative is ARC at the individual farm level (ARC-IC). U?D.s?f{O*lIBCy=r>mbI0|Y"!w' 6@GLuG}iUw49"ZS..a2dB65*I"X^B^UGaHWMql@a=z!}"c?| o7}0FJ@6c\'"f{RcZ5s5D["}%g=_{hg@ID?a>UxZ`EG,E>qFlsLwt:dw{7Un66/`rk/@I_x7@wU:;N/(=`W@6A jyBi%tRbtBwu?]W7/tTCXl E:TW+]-fHyN%N8A_v\ cwiLXMC Qu;$t4))pvtA&H8):D/=q!Gm,$\X2:H XyDXBNt$(9b4qRG5}sNfl-Zzq:{F$f/ZeA]FZ D2ZidI;!OQE]u( - ! We calculated the reference price needed for soybeans to match the same payment percentage for each of these program crops: In summary, based on the existing history of the PLC program, significant increases in soybeans reference price would likely need to occur before PLC performs similarly to other crops. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612.18 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Rates for baling Transportation costs run another $0.05 per bushel (for the first 10 miles to initial storage). 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. The American Transportation Research Institute (ATRI) recently released a study analyzing detailed trucking costs from 2008 to 2019. Wheat triggered in 67% of the years. WebCustom Trucking Freight Rates. SCO is a crop insurance product providing county coverage above farm-level coverage (see farmdoc daily, February 27, 2014). If kernels lose moisture without changing size or shape to become more dense, yield loss occurs (see Nafziger, October 3, 2003). Web2020 Custom Rates for Colorado Farms and Ranches 2 Disk Vertical Tillage Equipment Transport Charges Activity Basis For Charge Rates Reported Range Median Seed Given this reference price, PLC would have paid in 2018 and 2019, the height of the trade war. <> Use a Minimum number of miles at all times in your rate structure. BigBadBill got it right. The rate on grain hauling is on a per bushel loaded rate. You have to load right on up to the top if you are going to make it worth while. I know a guy that does it here in Ohio and I think he told me he was paid around .20 or .25 cents a bushel. Ive heard more small farmers say theyre not going to continue farming after this year than any other in my 15 years in the ag business, Rubeck said. Included for each operation are the number of reports, range, most frequently reported rate and the average rates. The machinery cost estimates include overhead, fuel, and labor. Custom rates survey : grain harvesting operations, Grain--Harvesting--Statistics--Periodicals, identifier-ALIS-catno | ALIS catalogue number, identifier-NEOS-catkey | NEOS catalogue key. For the week ending December 12, barge grain movements totaled 1,120,459 tons. Topflight Grains Mission: Our Topflight Grain Cooperative team is committed to the future of agriculture by improving the prosperity of our customers and employees through outstanding service, education, innovation, technology, and dedication. From 2019 to 2022, the average cropland for grain production value increased 128%, from $1,875 to $4,271 per acre. Several options exist for reducing non-land costs, such as previously covered tillage related costs (farmdoc daily, August 18, 2020) and this article focusing on harvest related costs. Topflight Grains Vision: To become Illinois best cooperative measured in customer satisfaction, volume, storage, revenue, and pride. For farms in that situation, the cost of retaining that equipment to use as needed is comparatively lower than the economic cost of a newer implement because depreciation and interest make up a large portion of the economic costs. 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, Swanson, K., G. Schnitkey, N. Paulson, C. Zulauf, J. Coppess ", CFAP Payments to Date and Possible Future Ad Hoc Farm Payments, Department of Agricultural and Consumer Economics, Department of Agricultural, Environmental and Development Economics. "The Agricultural Risk Coverage County Level (ARC-CO) Option in the 2018 Farm Bill." Schnitkey, G., K. Swanson, C. Zulauf, N. Paulson and J. Coppess. WebHarvesting, Drying, and Hauling Grain (continued) Average Charge Median Charge Range Number of Responses Drying corn (includes fuel, electricity, labor) - continuous flow $0.330. farmdoc daily(12):97,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,June 29, 2022. An $8.57 reference price is 6% higher than the current $8.40 statutory reference price. farmdoc daily(9):203,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,October 29, 2019. There were 1,022 grain barges unloaded in New Orleans, 13 percent higher than the previous week. The February price for all wheat, at $9.17 per bushel, is 69 cents higher than January and $3.34 higher than February 2021. But this is just one more problem in whats been a complicated season across the world. 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. When breaking down the costs of production, the ISU I am getting 1/2 penny per bushel per mile. 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. Sour 10 cents/bushel This publication presents a summary of custom work and rental rates. As corn price increases the moisture at which it becomes profitable to start harvest increases. The per-hour rate begins at the time the machine leaves for the farm until the vac job is completed. This publication presents a summary of custom work and rental rates. Also included are state level 2016 average rates, 2020 rates as a percent of 2016 and historical comparisons back to 1995 for selected operations. U.S. Class I railroads originated 27,950 grain carloads during the week ending December 5. 0.3% of price/point from 1.1-10.0 Unfortunately, input costs rose dramatically this year, too, as inflation soaked the economy. For the week ending December 10, 45 oceangoing grain vessels were loaded in the Gulf41 percent more than the same period last year. 2Based on costs in Table 4 and harvest of 1,900 acres. In some areas it may be difficult to outsource, either based on availability of a custom operator, timeliness of completing the task, or not aligning properly with how the crops were planted. For corn, once the crop has reached maturity the desirable moisture level for grain at harvest is 15%. Plastina, A., A. Johanns and O. Massman. And American producers responded in kind this year, with both corn and bean production up 3 percent and 5 percent, respectively, from 2020. Total grain inspections were down 10 percent from the previous week, up 37 percent from last year, and up 34 percent from the 3-year average. When compared to other crops, soybeans statutory reference price is low. Similarly, it would result in an extra $5 per acre cost for soybeans. Consider timing and the resulting impacts on costs and revenue that are expected to determine the best fit for the farm. 3.3125%. Costs in most other categories also decreased. As such, periodically evaluating whether owning or out-sourcing combining is prudent, particularly at the point where a combine needs replacement. Theres no doubt. Size and associated cost of the combine or grain cart are also factors. A $14 reference price would be 66% higher than the current reference price. From 2019 to 2022, the average cropland for grain production value increased 128%, from $1,875 to $4,271 per acre. The farmdoc economic cost estimate is set at $0.10 per bushel. 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. ARC-CO accounts for 86% and 85% of soybean base acre enrollment in 2021 and 2022. The seeds can absorb moisture overnight, so timing of harvest within a day may be important (see Nafziger, September 16, 2017). }Q~;O@4miP5BE7ymQwE#w,WH%)Q [C\mi@6V+27[g*@KU2+%xB.>^dfwWkrqr?nefuL man arrested on felony counts in $47K grain theft, Resources available for California farms affected by 2023 flooding, Breaking new ground with national corn yield contests, Animal-rights activists secure ban on Brazilian live cattle export, JBS cancels contract with company fined for hiring minors, Missouri man who killed Diemel brothers charged with federal crimes, Ag on Instagram: The best farm photos from April 28, 2023, Ag on Instagram: The best farm photos from April 27, 2023, Ag on Instagram: The best farm photos from April 26, 2023, Luke Bryan announces 2023 Farm Tour to kick off in Kentucky, Why influencers prevail over science communicators on social media, KIOTI introduces new CK20 and DK20 series tractors, From farm to crown? y_|HNL-sGIMm5!JPNJ MF ]&>e\dr|Q4h~4(. Brown, G. Schnitkey, K. Swanson, J. Coppess and N. Paulson. And farmers may find the optimal order requires switching back and forth between corn and soybeans multiple times. Pacific Northwest (PNW) grain inspections decreased 31 percent from the previous week, while Mississippi Gulf inspections increased 15 percent. These rates are only intended as a guide. 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. On 1100 that would be 33 bushel X 6.50 that would be 215 -60 for The exception to this date is to serve those customers who have a delivery contract in place. Thats the main reason Im renting out my ground and quitting, said Rubeck, owner of 300 acres. 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. 4 0 obj 0.3% of price/point from 2.1 5.0 WebIn Table 5, the 1,000 bushel grain cart is assumed to be used on 1,900 acres. The goal is to report what is being charged, not what should be charged. For example, the cost of running a 320 horsepower combine on a 2,000-acre farm is $39.70 per acre for corn, equal to the cost of running a 540 horsepower combine on a 2,400-acre farm. Eliminating the requirement to select PLC for acreage to be eligible for the Supplemental Coverage Option (SCO) insurance program also is warranted. 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. As a result, ARC-CO payments occurred in many counties. This will affect every farmer in Clay County, he said, pointing out that such concentration leads to longer lines of trucks at fewer elevators farther apart. 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. 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. For a detailed statement, please see the University of Illinois Copyright Information and Policies here. However, the ability to outsource is dependent on finding a custom operator and getting the work done in optimal timing. When thinking about the possibility of hiring a custom operator, there are several other factors to consider. To calculate the tax rate for qualifying transactions, subtract 5.00% from the sales tax rate that would normally apply at the location where the purchase is made. There were no non-shuttle bids/offers this week. Farms that own a grain drying and storage facility may have additional incentive to do all harvest operations themselves. PLC was instituted in the 2014 Farm Bill, and triggers payments when the market year average (MYA) price is below the statutory reference price. Pods in Beans 10 cents/bushel x][~]*I NmeufIdmN8Dr.f8uWGzu7rus/\gx7_O?5p /.WE_(n>yqK^.>E B&Jb;_? But whereas once upon a time, Clay County had boasted multiple grain elevators, by this year the Brazil and Clay City locations were really the last of their kind in a county with a population of about 26,000. WebCost per bushel is useful when producers are comparing marketing alternatives. Another consideration is owning equipment that is sized appropriately for acres and production. endobj "2020 Iowa Farm Custom Rate Survey." Sporadic counties across the country also received payments. Ceres Solutions does offer grain services in partnership with Gavilon Grain in Clay Countys next-door neighbor Vigo Terre Haute, 22 miles from Brazil. Paulson, N. and J. Coppess. As shown in Figure 3, ARC-CO made payments in some counties nationwide. Elevated autumn temperatures can lead to rapid grain moisture loss, with losses as great as 1% per day when temperatures are high and particularly when also breezy (see Nafziger, September 16, 2017). The new regulation will let States follow the updated standards of the American Association of State Highway and Transportation Officials, among others, without requiring an FHWA exception. For the week ending December 14, the U.S. average diesel fuel price increased 3.3 cents from the previous week to $2.559 per gallon, 48.7 cents below the same week last year. The additional cost associated with that drive is just one too many, Rubeck said. VP`7_3!Pkz[};qo(K6,P1!Hp d~ag_8]O(d9|q-e%K yL>h|%V$CnJJIo*v cY`V$X2^.(3A{|+ ef&\poep*7pw u Gw /h$Xd'D7a|8sP&T"FPwlw):Jlpxxa@EZ8dhO 0R'w[NlI/q6iC h3a8IjZOM c3 jjpA7v`e|?kA2C' Rn1_U'Gc7x6[|8I}{ZW]}7fl,1+~_QX)x,V]9FC)d3QYK(QkXyq'wF;zh 29yr_*$b$9f" Schnitkey, G., K. Swanson and N. Paulson. Grain transportation costs can be divided into two categories: ownership costs, which occur regardless of how much the truck or tractor is used, and operating costs, which vary directly with the number of miles driven. Also called fixed costs, include depreciation, interest, insurance, and licenses. Because average custom combining costs for corn and soybeans are nearly the same as economic costs and timing could be an issue with a custom harvester, a farm with adequate labor will generally find it cost effective to own and operate a combine. All grain delivered during the harvest period will be stored each Thursday evening unless prior arrangements have been made. In a letter sent to Clay City and Brazil grain customers by Ceres Solutions Cooperative CEO Jeffrey Troike dated August 12, producers were informed that: It has been determined that, due to the age and condition of our grain facilities, and also due to declining utilization, Ceres Solutions will no longer receive grain at the Clay City and Brazil locations as of December 31, 2021. 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. Average December shuttle secondary railcar bids/offers (per car) were $299 above tariff for the week ending December 10. When combines or grain carts are used on fewer acres than those referenced, the cost of operation rises.