Dust flying in every field, grain trucks rumbling down the road, and golden hues of corn and soybeans set the scene this time of September. For many area farmers, Labor Day indicates an end to the growing season and the start of the busiest time of year. Falling early this year, many local producers were not in the fields the same week of Labor Day; however, favorable weather conditions have allowed good progress to be made since then. Harvest season is an animal of its own on any farm consisting of long hours, increased stress levels, and more time away from home. At the same time, there is enjoyment in reaping the rewards of a full season of labor, over a two month period beginning in September. Harvest season is a love-hate relationship most of the time, but atop the concerns for farmers this fall is the value of the crops they are harvesting. In a conversation with Sangamon County Farm Bureau manager Jim Birge, he indicated the value of grain being drastically reduced from what it was last year is concerning many local farmers. He says that not all hope is lost however, as corn yields have been coming in strong so far. According to Birge, “if it’s not worth a lot, [you] better have a lot more of it.” One macroeconomic factor that has led to depressed commodity prices this season is the fact producers get better at growing crops every year. Since 2000, Illinois corn yields have averaged increasing by over three bushels per acre annually, with soybean yields increasing on average one bushel per year. Because farmers nationwide continue to improve, the pressure falls onto individuals to improve themselves to remain competitive in a challenging market such as the current one.
Unfortunately for local farmers and the local economy, net farm income is slated to drop substantially with projections of a 38% decrease from last year in Illinois according to a publication from the University of Missouri. Part of this is due to good commodity prices last year and good yields across most of the state, with corn and soybeans carrying a much lower value this year. Corn prices for instance have decreased by over $1.30 per bushel since September 2023, and over $3.15 since September 2022.
Granted, there are many factors that go into farm profitability, including fluctuating input costs and highly weather dependent crop yields. However, it is valuable to visualize the impact that these price changes have on producers. A hypothetical farm that produces 100 acres of corn averaging 225 bushels per acre annually would have sales based on USDA September corn prices at:
2022 ($7.09): $159,525
2023 ($5.21): $117,225
2024 ($3.90): $87,750
The cents add up fast for producers, with the market price being largely out of their control. Weather is another uncontrollable that crop yields are highly dependent upon. Therefore, producers must manage the things within their control, something that Birge mentions being a critical factor this fall. He says, “I think the farmers are trimming some expense, having some hard conversations with their bankers to make sure they can get done with what they need to do, and ensure the bank is comfortable.” An old English adage states that “when the going gets tough, the tough get going,” a value that is engrained in the American farmer. With lots at stake financially this fall, combines will be honed in on bringing home every hard earned bushel to be sold between now and the next harvest.
To view the Illinois Farm Income Outlook for 2024, follow the link to