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Central Illinois soybeans provide greater return

Central Illinois soybeans are bringing higher returns to growers than previously estimated.  University of Illinois farm management specialist Gary Schnitkey says even considering record yields, market prices still exceed nine dollars.

“Given those sorts of levels, we’re going to have much more revenue this year than last year,” Schnitkey told Brownfield Ag News Thursday.  “That’s going to result in higher returns for soybeans.”

For corn, Schnitkey says revenue from sales of grain will not be enough to make up for lower government payments.

“It’s about $10 higher this year, in 2016, but we’re projecting lower ARC payments,” he said.  “So overall, revenue will be down for corn coming into 2016.”

Corn growers are saving money this year on inputs.

“We’re projecting down about almost $50 an acre on corn; much of it’s coming in fertilizer cost,” said Schnitkey.  “Fertilizer were down in 2016 compared to 2015, and that’s why we’re getting a pretty large decline.”

Schnitkey says cost savings determined in the latest crop budget can be applied across the Midwest, however Illinois is an area of exceptional yields, so he says crop returns will be lower in other states.

AUDIO: Gary Schnitkey (5 min. MP3)