grain hauling rates per bushel 2020

Brian Boyce is an award-winning writer living on a farm in west-central Indiana. For corn, once the crop has reached maturity the desirable moisture level for grain at harvest is 15%. The farmdoc economic cost estimate is set at $0.10 per bushel. Moreover, raising one crops reference price while keeping the other crops statutory references prices fixed could be politically problematic. With a record demand for Chinese grain due to global weather issues and the COVID-19 quarantine, compounded by international supply chain snarls, corn prices per bushel were $5.77 at Novembers end with soybeans at $12.64. Green Damage Unfortunately, input costs rose dramatically this year, too, as inflation soaked the economy. WebFor example, state average custom rates for harvesting corn and soybeans per acre increased to $41.63 and $40.18 from $39.34 and $37.29, respectively, two years ago. Industrial Hemp Planting and Production Both locations will continue to service the communities by way of their agronomy sales. y_|HNL-sGIMm5!JPNJ MF ]&>e\dr|Q4h~4(. But that simply hasnt been typical of small town U.S.A. over the years, where the trend has been moving toward farmers building their own larger storage facilities. Given PLCs performance, the 15% of soybean acres enrolled in PLC seems high. 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. The decision to invest in more grain storage units on their own farms is a weighty one. For example, a generational family farm may have different levels of ownership, own separate pieces of machinery, or have acreage shares that dont align with ownership, and these costs can be used as a resource for settling with other farm members. And as all producers know, those figures dont include labor or other soft costs. 4.0 cents per point of moisture, per bushel, removed from 19.1 24.0%, split on half points. 3 cents a point from 10.1% to 15.0% This is particularly problematic for farmers who cash-rent their ground for a fixed price. When spread over the same acres used to calculate farmdoc economic costs, the total average cost for custom combining is $90,650 (1,500 x $36.70 + 1,000 x $35.60). However, it may be a challenge to find a low cost custom harvester in some areas and this takes control over timing out of the farmers hands. Here are some of ags biggest pageants, Timber fumigation plans in rural West Virginia spark backlash. 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. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. These beans will be tested and segregated at delivery. 2 0 obj Long-Grain Rice: To trigger in 89% of the years, the statutory reference price would have to be above $13.00, a 50% increase over the current level. Schnitkey, G., C. Zulauf, K. Swanson, J. Coppess and N. Paulson. 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. 0.3% of price/point from 2.1 5.0 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. Drought in this area had a large negative impact on yields. Accurate operational cost data are key to public agencies decisions to fund roadway projects, and the efficient movement of freight and commodities, including grain, depend on these projects. Other grades subject to market conditions, Moisture 1.4% shrink/half percent of moisture from 13.1 15.0% Male Posted October 8, 2021 16 hours ago, TeachersPet1066 said: When thinking about the possibility of hiring a custom operator, there are several other factors to consider. "ARC-CO: Background, Payments, and Perspectives for Corn." Alberta A summary of costs for harvest operations from the farmdoc machinery cost estimates is shown in Table 1 next to the corresponding average, median, minimum and maximum custom rates from the Iowa survey responses. endstream endobj 2887 0 obj <>stream This is subject to change with market conditions. 2021 Indiana Farm Custom Rates - Purdue University Profit from or hedge against price movements in the United States' most widely PLC and ARC-CO for Soybeans: Payments and Perspectives USDA Releases Report Showing Manures Use By Crop, U.S., Five Other Ag Exporting Countries Say India Is Vastly Underreporting Its Wheat, Rice Subsidies, Ag Credit Tightens with Rising Interest Rates and Following Bank Collapses, Ideas Big and Small: Create a Culture of Creativity on Your Farm, Dust Bowl 2.0? Hauling grain from the farm to MRGAs Casselton terminal* 0-20 miles to terminal. WebHarvesting, Drying, and Hauling Grain (continued) Average Charge Median Charge Range Number of Responses Drying corn (includes fuel, electricity, labor) - continuous flow Rubeck harbors no ill will toward the cooperative and said hes always liked their employees. Website designed and hosted by Kestrel Website Design | Ag Website Design Specialists, Kestrel Website Design | Ag Website Design Specialists. Some farms may have to comply with special requirements of land or business owners. "Cash Rents in 2020 and 2021." The 2021 season may well be remembered as one where irony was the top crop harvested. A farm may justify the higher cost per acre, with the expectation for added costs or lost revenue if harvest progressed at a slower pace with the smaller combine. The desirable moisture level for harvested soybeans is 13% moisture. In 2018 the extra charge was averaged $0.226 per bushel of grain sorghum for yields greater than 48 bushels per acre. The quality of data is dependent on the cooperation received by producers as well as commercial custom operators. Corn production for 2021 is forecast to exceed 15 billion bushels, with beans at 4.45 billion, and average yields of 176.5 and 51.5 bushels per acre, respectively. The goal is to report what is being charged, not what should be charged. The local break-even for corn this year was between $4 and $4.75 per bushel, with $10 to $11 for soybeans, depending on size variables, he said. Harvesting Corn: What Grain Moisture This was $257 more than last week and $730 more than this week last year. ARC-CO payments are capped at 10% of benchmark revenue. The effective reference price is capped at 115% of the statutory reference price or $9.66 for soybeans (8.40 x 1.15 = 9.66). The charge for use of the vac-u-lator for farm-stored grain (or grain mishaps) is $100/hour with a minimum of $200. These are record times that were in front of, he said, noting the yields and prices. Yields had to be well below benchmark yields before ARC-CO would make payments. Farmland Prices in Brazil More than Doubled in the Last Three farmdoc daily(12):97,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,June 29, 2022. Disclaimer: We request all readers, electronic media and others follow our citation guidelines when re-posting articles from farmdoc daily. "The Case for Looking at the ARC-IC (ARC-Individual) Program Option." WebFLAT RATE COMBINING AND HAULING fuel 0.30 0.30 COMBINING AND HAULING CORN fuel Combining and hauling CornReported as Combination of per Acre rate, hauling, plus overage Rate per Acre Hauling per Bushel Overage Rate per Bushel Overage charged on yields over: ResponsesAverageMinimumMaximumMost Common A yield well below benchmark yields needed to occur before ARC-CO made payments. Unlike the farmdoc machinery cost estimates which represent actual economic cost of performing the harvest operation, the custom rate survey reports actual rates expected to be charged or paid in 2020. Mo@i$JJW$n++*iG*%r`%xKq|A"[[b5aK #r!s01%+ve)?_*CV+K|"g/XJQ'$MSi9tCLaxr j]. Grain Hauling Cost Calculator The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. As shown in Figure 3, ARC-CO made payments in some counties nationwide. PLC and ARC-CO are two choices for receiving commodity title payments. 0-20 minutes load time @ $.13/bu 21-40 minute load time @ $.14/bu 41-60 minute load time @ $.16/bu. Inputs are going to be significantly higher next year. This represents a 27-percent decrease in outstanding Topflight Grains Vision: To become Illinois best cooperative measured in customer satisfaction, volume, storage, revenue, and pride. Ive heard more small farmers say theyre not going to continue farming after this year than any other in my 15 years in the ag business, Rubeck said. ]j0IGH#wC.Sr>82:8wN|f%E"a;D"Wt(@=X( \.q5;%z_wloyWb}AE,m/BjE&fRAM.Bv @[o|vwvf^oVku8fj6JPKjU :tP`&j*IUNlJ9&7&d0i[wISndSU{uq^r[nYOa!6F.5afU&Emv]erbxbkDJKN0ry)G-uIY)7Z2?vjvnsU|?J(-I7c!J[r=,cup,x{CE~r+/OZ3$|my7Mw)Gn@XI 7c S] ` c1`^>c ic9t{yQ This was 36 percent more than the previous week and 58 percent more than the same period last year. The equipment needed to harvest can be costly to own and operate, particularly when purchased new or relatively new. "ARC-IC: Payment Examples and Revised 2019 ARC-IC Payment Calculator." Too much for he and four surrounding neighbors he named right off the top of his head, each of whom farm in the 200- to 300-acre range. We regret any inconvenience this decision may cause. Deciding to outsource one or more harvest operations in a single year will reduce fuel, labor, and repair costs for the given year, but the ownership costs will remain. 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. 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Farmers evaluating how costs may be cut in the upcoming year have several options, including reducing cash rents (see discussion in farmdoc daily, August 11, 2020). Net corn export sales were 1.362 mmt, down 1 percent from the past week. Drying costs (on farm) usually run about $0.040 per point of moisture (per bushel). These high percentages can be attributed to the fact that PLC made no payments on soybeans since its inception in 2014, and expectations for the marketing year average price to remain well above the reference price at the time of enrollment for both the 2021 and 2022 crop years. 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. Within the next 10 days (starting December 11), 66 vessels were expected to be loaded50 percent more than the same period last year. Figure 3 shows payments for the type all or non-irrigated series for each county with an ARC-CO benchmark. This was unchanged from the last available rate on December 3. Storage costs are around $0.03 per bushel per month. With a larger machine harvest could progress faster, but the cost is an extra $6 per acre. Web1.4% per point to 15% for corn that is contracted or sold (broken on the 1/2) 1.4% per point to 15% for corn put in DP (broken on the 1/2) 1.4% per point to 14% for corn put in storage Based on survey results, it would be possible to hire a custom operator well below the economic cost of owning and operating. Litz said many of his larger customers are building additional storage operations on their own farms, and this could certainly bring risk depending on the future costs of inputs and market prices. Corn Overview - CME Group The Grain Hauling Cost Calculator was developed as a decision aid to assist Tennessee producers in estimating the cost of transporting corn, wheat, and soybeans from their farm to alternative locations. <> USDA Announces 2020 Loan Rates for Wheat, Feed Grains, Oilseeds, Rice &iyxuaAa[@&w,mZ2~_ns5F|>&OaBjM0ki]Qj)-6S3MVP7d\3U:>mfSWMPE>6`cd90fbA@b6n!-x LN=9g]Lzt3@W.SD;.K7Q? That said, a local elevator is always good to have around for the larger farmers who rent smaller fields in remote areas. The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. 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. Schedule of Rates - Goodwine Coop Net soybean export sales were 0.569 mmt, up 40 percent from the previous week. 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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. Likewise, as grain prices decline the target moisture for harvesting corn decreases. Web4.0 cents per point of moisture, per bushel, removed from 19.1 24.0%, split on half points. 2021: The 2021 MYA price was $13.30, well above the 2021 ARC-CO benchmark price of $8.95. Laurel Mann, corporate spokeswoman for Ceres Solutions Cooperative, said she understands many members and customers are unhappy about the decision, but ultimately its in the best interest of the members. The total cost per bushel of soybeans is projected at $8.72 for non-herbicide-tolerant beans at 56 bpa, according to the report.. Smaller producers like Rubeck simply say its time to get out, as the added cost of transport to another grain elevator being the last straw. For example, a 2,000-acre farm could run a 540 horsepower combine at a cost of $45.80 per acre for corn or a 320 horsepower combine at a cost of $39.70 per acre for corn. To obtain the lowest costs, newer combines must be used on 1,500 acres or more per year. With the Brazil and Clay City facilities holding roughly 700,000 bushels of grain between them, that load will now be bottle-necking the line somewhere else, he said. Cost of production estimates, per bushel, for herbicide-tolerant soybeans are $8.89, $8.72 and $8.57 assuming 50, 56, and 62 bushels per acre, respectively. And farmers may find the optimal order requires switching back and forth between corn and soybeans multiple times. Schnitkey, G., J. Coppess, N. Paulson, C. Zulauf and K. Swanson. Size and associated cost of the combine or grain cart are also factors. PLC was instituted in the 2014 Farm Bill, and triggers payments when the market year average (MYA) price is below the statutory reference price. Absolutely, he said. Another consideration is owning equipment that is sized appropriately for acres and production. These changes could also potentially benefit other crops if their market prices increase relative to their statutory reference prices in the future. WebA typical rate is an initial charge of 9 to 16 cents per bushel for the first 3 months of storage and an additional charge of from 2 to 4 cents per bushel for each additional month. Arguments are being made to increase statutory reference prices. 2885 0 obj <>stream Comments can be submitted until December 24. Service Rates 0.6% of price/point above 5.0. stream 2 cents/lb below 51.0, Sour 5 cents/bushel Peanuts: To trigger in 100% of the years, soybeans statutory reference price would have to be above $14.00, the current FSA projection for the 2022 MYA price. Farmers who own and operate their own machinery for harvest operations are able to make these decisions and select an optimal harvest order and timing. The exception to this date is to serve those customers who have a delivery contract in place. The additional cost associated with that drive is just one too many, Rubeck said. Moreover, the $8.57 MYA price for 2019 was below the $9.63 benchmark price. When breaking down the costs of production, the ISU Pods in Beans 10 cents/bushel In September this year, the Ag Economy Barometer, a nationwide monthly survey of producers, reported a drop of 14 points to a reading of 124, the weakest sentiment of farmers since July 2020 when it hit 118 amid the first big wave of COVID-19 quarantine measures. 2019: Wet weather impacted yields over much of the Midwest in 2019. The lack of control of harvest timing may result in added costs such as drying or lower revenue due to yield loss, as discussed previously. The problem in ag, he said, is smaller producers continue to lose out and at some point, there might not be any at all. Biodiesel, waste vegetable oil (wvo), and Because of the capital investment needed for harvesting equipment, the decision on how to manage harvest operations will generally be a long-run decision. If you dont have a big cart and at least 2 combines, I charge $100/hour from the time you tell me to be there, until I get either home or to my next load. At $6.50 that would be 175.50 - 60 for fuel. The economic costs of owning and operating a grain cart (tractor overhead included) is based on a $57,500 grain cart with 1,000-bushel capacity used on 1,900 acres. From 2014 to 2023, the MYA price for soybeans has never been below $8.40 (see Figure 2). Unlike all other major program crops, PLC did not trigger any payments for soybeans from 2014 to 2022, primarily because soybeans has a low statutory reference price relative to other crops. These rates are only intended as a guide. Custom operators to haul grain are generally available for hire, and at a cost that is the same as the farmers cost of owning and operating. Rubeck said he made it a point to arrange for his land to be farmed next year by another family farmer, who may be able to pick up more ground yet as a result of this move. The 2018 flat rate charge per acre was $26.10, up $0.43 from 2016. When compared to other crops, soybeans statutory reference price is low. And then in August, farmers in west central Indiana learned that news that one of the states leading cooperatives was going to cease accepting grain at two locations. The machinery cost estimates include overhead, fuel, and labor. 3.5 cents per point of moisture, per bushel, removed above 24.0%, split on half points. New WOTUS Rule on Hold for More Than Half of U.S. Raising soybeans reference price to this level would have large budgetary impacts for the next Farm Bill. farmdoc daily(9):173,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,September 17, 2019. The effective reference price is capped at 115% of the statutory reference price or $9.66 for soybeans (8.40 x 1.15 = 9.66). The Federal Highway Administration (FHWA) published a notice of proposed rulemaking to give States more flexibility in setting design standards for highway projects. Understanding the difference in the intent of the two reports, and acknowledging some differences in general assumptions (for example, fuel rate of $2.50 versus $2.63 per gallon), explains the potential differences in rates reported from each source. Alternatively, harvesting at moisture levels above 15% can result in added costs for drying. Another improvement would be eliminating the requirement to enroll in PLC to purchase SCO. 2020: In 2020, the MYA average price of $10.80 was above the 2020 ARC-CO benchmark price. Table 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 rates, and ocean freight rates from U.S. Gulf and PNW to Japan as proxies. If looking to outsource a harvest operation, consider outsourcing trucking, particularly for farms that dont have extra operators and those hauling direct to a market. 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Given all that, its increasingly problematic for producers under about 1,500 acres to handle the increased costs associated with trucking grain an extra 20 to 40 miles, let alone finance extensive capital improvements such as bins on their own farm, he said. hYmk9+,=rq>|pY7! Computing a Grain Storage Rental Rate for each "other oilseed" Marketing assistance loans for the 2020 barley, canola, crambe, flaxseed, oats, rapeseed, sesame seed, and wheat crops are available through March 31, 2021, and for the 2020 corn, Net wheat export sales were 0.617 mmt, up 38 percent from 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. 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. This publication presents a summary of custom work and rental rates. Tax Guide for Agricultural Industry - California DRYING RATES WILL BE APPLIED TO WET BUSHELS. For example: Location A is offering $13.80/bu for equivalent allows producers to compare the There were 1,022 grain barges unloaded in New Orleans, 13 percent higher than the previous week. Web2020 Custom Rates for Colorado Farms and Ranches 2 Disk Vertical Tillage Equipment Transport Charges Activity Basis For Charge Rates Reported Range Median Seed To obtain a payment in 64% of the years, the average payment rate across all other crops, soybeans statutory reference price would have to be $10.10, 20% higher than the current level. They are not to be interpreted as the rates you must charge or pay. The effective reference price is capped at 115% of the statutory reference price or $9.66 for soybeans (8.40 x 1.15 = 9.66). Despite the drop in grain inspections, total rail deliveries of grain to U.S. ports remained strong; increasing 122 percent from last year and increasing 64 percent from the 3-year average in the last 4 weeks. Farms The effective reference price is the maximum of the statutory reference price ($8.40 per bushel for soybeans) and 85% of the five-year Olympic average of MYA prices, lagged one year. endobj A number of assumptions are made to estimate economic costs for combining and grain cart, but cost of hauling grain is even more complex. Costs (total, dollars per bushel, or custom rate equivalent in dollars per mile) can be compared between unloaded in New Orleans Contact Us February 20, 2020 The views or opinions expressed in this article are those of the author and may not reflect those of AGDAILY. For the week ending December 3, unshipped balances of wheat, corn, and soybeans totaled 57.8 million metric tons (mmt).

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