How much do Illinois farmers make per acre?

Schnitkey estimates, with budgets based on fall delivery prices of $6 corn and $14 soybeans, central Illinois farmers will see a return on investment (ROI) of $276 per acre for corn and $199 per acre for soybeans.

Is farming profitable in Illinois?

From 2014 to 2020, central Illinois farmers received an average price of $9.84 per bushel, $1.93 per bushel below the $11.77 break-even price. Even given these high costs, corn and soybean production are projected to be profitable in 2022 (see Figure 3).

What is the average profit of a farm?

The average operating profit margin stood at 16.1 cents per dollar of revenue in 2018, down from 18.4 cents per dollar of revenue in 2017. The composition of total farm operating revenues was virtually unchanged in 2018 compared with 2017.

How many acres is considered a farm in Illinois?

For those larger counties in the state (300,000+ population) and counties contiguous to those large counties, size may be used as a restriction. In those counties, a farm can be defined as 5 acres or more and generating more than $1,000 in the sale of farm products.

What is a good profit margin for a farm?

For farms that were in the top quartile during the 2010 to 2014 and 2015 to 2019 periods, the average profit margin was 24.4 percent. Based on the results in this paper, farms are encouraged to use an operating profit margin ratio of at least 20 percent as their benchmark.

Do farm owners make a lot of money?

“People, on average, that are running large commercial farms are making substantial amounts of money,” said Jim MacDonald, an economist at USDA, noting their the average household income is over $200,000 a year.

What qualifies as a farm in Illinois?

Number of Farms in Illinois The Census defines a farm as “any place from which $1,000 or more of agricultural products were produced and sold, or normally would have been sold, during the census year.” This definition has been used since 1974.

Is Illinois farmland a good investment?

The larger benefit of owning Illinois farmland has been the steady climb in value. Over the last 10 years, Illinois farmland owners have seen their initial investment increase in value by over 9% per year in some cases.