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Illinois grain farms make $80k less in 2015

A farm management specialist says net farm incomes in Illinois will be nearly $80,000 less than 2014.

Gary Schnitkey at the University of Illinois tells Brownfield grain farmers made about $104,000 on average last year.

“This year, we’re probably looking at something in the $20,000 to $30,000 dollar range.”

He says there are three main factors behind the decline.

“The first is lower corn yields; last year in Illinois we had record-setting yields.  This year we’re looking at close to trend yields.  The second factor is lower soybean prices.  We had a $10.20 price for 2014; we’re looking at something like $8.90 for 2015.”

The third factor is lower marketing gains.

Schnitkey says if commodity prices remain flat and yields next year are similar to 2015, incomes in the 20 to 30 thousand dollar range are anticipated.

“If there are significant cost cuts, we could see incomes rise.  And obviously higher yields and/or higher prices would also result in higher incomes.”

Schnitkey writes in the report that the mid-2010’s are shaping up to be similar to 1998 through 2002, the last time grain farming experienced a protracted period of low prices.