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

2. 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)

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

4. Fall
Fuel Cost- Combine ( gallons per day), Semi(s) and Auger cart ( 150 gallons every 3-4 days) Tillage tractor (200 gallon every 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)

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

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

7. 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

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

9. 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

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

11. 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

12. 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

13. 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 $ 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.

14. 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

15. 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

16. 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

17. Resources df
continues-to-increase/
and-2015-planting-decisions.html
TractorHouse
USDA