Gross revenue per acre for corn growers in northern Illinois is forecast to be the lowest in five years, says economist Gary Schnitkey of U-Illinois. He foresees revenue of $808 an acre this year, down 14 percent from the 2007-13 average of $938. Gross revenues are likely to be slightly lower in 2015, at around $771, writes Schnitkey at farmdoc daily.
“Lower prices are resulting in lower gross revenue projections for both 2014 and 2015. These lower projections will require lowering or eliminating capital purchases, lowering fertilizer and seed costs, lowering cash rents, and reducing other cash flows,” he said.
An online survey at Agriculture.com asks farmers which they’d prefer at harvesttime – a big crop and low prices, a small crop and high prices, or something else. Sixty percent chose “a small crop and high prices.”