The Effect of rising costs Farm Input Costs The Effect of rising costs

Spring Seed Chemicals Fertilizer Repairs/ spring prep (Direct costs) Averages For Illinois Estimated Direct costs for corn crops in Illinois: $340 Some projections have the average profit for the farmer as a negative value for 2017 Seed Chemicals Fertilizer Repairs/ spring prep (Direct costs)

Summer Crop care- Spray for weeds Upkeep of fields- Physical appearance (landlords care) Fuel – Current Diesel price 2.48 per Gallon Estimated Power Costs: $133 (Labor, fuel, repairs )

Fall Fuel Cost- Combine (150- 250 gallons per day), Semi(s) and Auger cart ( 150 gallons every 3-4 days) Tillage tractor (200 gallon every 1.5-2 days) Fuel costs to run an S660 combine for one day is around $500 – To run 7 days straight $3,472 Rent/ property payments Employee wages Fertilizers – Anhydrous Ammonia over $730 per ton ($0.31 per pound)

Winter Land upkeep – Tile work, Clearing/ trimming bush and timber. Upgrades Gain transport cost of on site grain being sold

Yearly cost Equipment Tractors 121,000-600,00 new used 10,000 up Combine New $370,000-500,000. used good 75,000 up Semis (Grain transport method of choice) – Typical farm semi is 25,000- 100,000$ Trucks ( pick-ups) 10,000- 50,000

Spring Equipment Tractor(s) Planter(s) Tillage tools Seed tender 40,000 120,00 Current value 100,00 Tractor(s) Planter(s) Tillage tools Seed tender GPS – When our farm purchased 2 units 10 years ago each unit cost around 2,000. New units can run up to 20,000 depending on what system is used. Current Value 55,000

Summer equipment Mowers Sprayers Bat wings 6 footers Regular grass mower Sprayers Water tanks “High boys” needed to spray standing crops $ 100,000- 400,000 Fuel Fuel Fuel

Equipment Fall Combines(s) In 2014 our new John Deere S660 around $300,000 Headers $ 80,000 new (For both) Head haulers Tractors, more than one necessary Auger Cart Semi Tillage tools

Mus. Backhoe/ dozer /excavator Trailers Augers Shop tools Spare parts

What are The Effects of these Cost? Youth in farming is lacking Average age of Farmers: Amount of ground needed to live off a grain farm- 2000/3000 acres

Primary problems 1 The amount of capital required for a beginning farmer is not realistic for young farmers to achieve Marvin Finfrock III was quoted as saying “If you were given 2 million dollars, tax free, to start a farm you wouldn't even be scratching the surface towards getting everything you need” Finfrock and his family farm 13,000 acres Sky rocketing costs are causing increased debt for farmers

Primary Problems 2 There is only one cost for the farmer that does not lose its value is land….usually Land prices in central Illinois range from $ 8,000 – 15,000 per acer Cash rent for the same ground range from $ 200-350 per acre Even with all of the cash that is dumped into the business on a yearly basis, come next year you will have to pay it all again. Land is the only thing that once bought you will not have to pay for again.

Real time Stats The fuel bill for the farm I work for last year was $36,000 Our 9300 need new tires – We purchased four new tires for $12,000 (The tractor has 8 tires) I had an accident last fall, I was working late, I’m overly tired from NAMA, in my worn out state I kicked a power pole The result from me kicking the pole was a $1,000 I-beam and a $100 bearing

Why are those Stats important? When young farmers are just starting out they have very little “extra” money to spend Things happen, there will always be unexpected expenses and some of the newer/ smaller farmers may not have the money for repairs

What These Costs Do To The Industry The high costs of all the inputs to farming are driving away young farmers Smaller farms are also being pushed out of the industry 97% of farms may still be family farms, but with the shrinking amount of profit per acre due to higher input costs the little guy will have to make way to corporate farms

Resources http://www.farmdoc.illinois.edu/manage/actual_projected_costs.p df http://agfax.com/2017/02/17/illinois-farm-finances-ag-debt- continues-to-increase/ http://www.extension.iastate.edu/agdm/crops/pdf/a1-20.pdf http://farmdocdaily.illinois.edu/2014/10/nitrogen-fertilizer-prices- and-2015-planting-decisions.html TractorHouse https://configure.deere.com/cbyo/#/en_us/products/agriculture USDA