grain hauling rates per bushel 2020

For the week ending December 10, 45 oceangoing grain vessels were loaded in the Gulf41 percent more than the same period last year. And people are still quitting due to the costs.. 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 Webcorn price, at $6.10 per bushel, is up 53 cents from last month and $1.35 from February 2021. When compared to other crops, soybeans statutory reference price is low. 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. ARC-CO is a revenue program that makes payments when county revenue is below 86% of benchmark revenue. Here are some of ags biggest pageants, Timber fumigation plans in rural West Virginia spark backlash. The per-hour rate begins at the time the machine leaves for the farm until the vac job is completed. Total grain inspections were down 10 percent from the previous week, up 37 percent from last year, and up 34 percent from the 3-year average. 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. Use a Minimum number of miles at all times in your rate structure. BigBadBill got it right. The rate on grain hauling is on a per bushel loaded rate. You have to load right on up to the top if you are going to make it worth while. I know a guy that does it here in Ohio and I think he told me he was paid around .20 or .25 cents a bushel. From 2018 to 2019, combined driver wage and benefits decreased from 77.6 cents per mile to 69.3 cents per mile. <> Some farms may have to comply with special requirements of land or business owners. Roughly 60 percent of U.S. grain is transported by truck (according to USDAs Agricultural Marketing Service), and well-functioning roadways are essential to sustaining low transportation costs and the competitiveness of U.S. grain. And while interest rates for ag-lending are favorable right now, a sudden drop in crop prices could leave even the bigger farmers in the lurch. The following comparisons are relevant to farms who already own newer harvesting equipment or those who are considering a purchase while aiming to manage costs effectively. 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. The Iowa State custom rate survey breaks this down based on hauling to farm storage versus to market, and various distances. 2 0 obj For a detailed statement, please see the University of Illinois Copyright Information and Policies here. All grain delivered during the harvest period will be stored each Thursday evening unless prior arrangements have been made. Transportation costs run another $0.05 per bushel (for the first 10 miles to initial storage). 9 months prepaid storage is required by the government to seal grain. The equipment needed to harvest can be costly to own and operate, particularly when purchased new or relatively new. As a result, PLC has yet to be an effective risk management program for soybeans. At $6.50 that would be 175.50 - 60 for fuel. Under the 2018 Farm Bill, farmers made commodity title choices for: ARC-IC use of 6% was relatively high in 2019 and 2020 because of the prevalence of prevented planting associated with widespread flooding during the 2019 spring planting season (see Figure 1). The lowest MYA prices of $8.48 in 2018 and $8.57 in 2019 occurred during the trade war with China. A proportional increase in all reference prices would be politically more feasible but likely not aid soybeans. Schnitkey, G., C. Zulauf, N. Paulson and J. Baltz. farmdoc daily (10):143, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, August 4, 2020. A seemingly comparable figure is the rate for hauling to market five miles away with an average and median at $0.10 per bushel, and rates ranging from $0.05 per WebTable 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 farmdoc daily(4):37,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,February 27, 2014. Reasons for requiring PLC for the purchase of SCO are difficult to rationalize. I am getting 1/2 penny per bushel per mile. 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. As shown in Figure 3, ARC-CO made payments in the Great Plains, particularly in North and South Dakota. Drought in this area had a large negative impact on yields. Plastina, A., A. Johanns and O. Massman. Recently released crop budgets (farmdoc daily, August 4, 2020) project losses for corn and soybeans on Illinois farms, given current assumptions for 2021. 2021: The 2021 MYA price was $13.30, well above the 2021 ARC-CO benchmark price of $8.95. Whats Wrong with the Current Waters of the U.S. Rule? PLC has provided no payments for soybeans from 2014 through 2022. In a letter sent to Clay City and Brazil grain customers by Ceres Solutions Cooperative CEO Jeffrey Troike dated August 12, producers were informed that: It has been determined that, due to the age and condition of our grain facilities, and also due to declining utilization, Ceres Solutions will no longer receive grain at the Clay City and Brazil locations as of December 31, 2021. Details of those three programs are provided in three farmdoc daily articles: ARC-CO (farmdoc daily,September 17, 2019), PLC (farmdoc daily,September 24, 2019), and ARC-IC (farmdoc daily,October 29, 2019). A hindrance to choosing ARC-CO is the requirement of being in PLC to purchase the Supplementary Coverage Option (SCO). 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. 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. Sporadic counties across the country also received payments. 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. 0.3% of price/point from 2.1 5.0 x][~]*I NmeufIdmN8Dr.f8uWGzu7rus/\gx7_O?5p /.WE_(n>yqK^.>E B&Jb;_? Pacific Northwest (PNW) grain inspections decreased 31 percent from the previous week, while Mississippi Gulf inspections increased 15 percent. The 2019 and 2020 crop years by March 15, 2020, The 2022 crop year by March 15, 2022, and. Iowa State University custom farming surveys are useful for outsourcing decisions. Given the close comparison of economic costs to custom rate costs, it likely would not make sense for a farm to hire a custom combine or grain cart if those pieces of machinery are already owned unless the farm plans to make a long run decision to change approach and sell the equipment. farmdoc daily (10):147, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, August 11, 2020. Figure 3 shows payments for the type all or non-irrigated series for each county with an ARC-CO benchmark. From 2014 to 2019, MYA prices for soybeans were below the ARC-CO benchmark price (see Figure 1). The seeds can absorb moisture overnight, so timing of harvest within a day may be important (see Nafziger, September 16, 2017). DRYING RATES WILL BE APPLIED TO WET BUSHELS. WebCustom Trucking Freight Rates. 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. ,`~SH"XN Schnitkey, G., K. Swanson, C. Zulauf, N. Paulson and J. Coppess. A farmer evaluating costs and returns may consider whether to own a combine versus outsourcing the task. Im hearing a lot of that and Im seeing it, Litz said. 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. They are not to be interpreted as the rates you must charge or pay. 3 cents a point from 10.1% to 15.0% Harvesting before optimal timing can result in additional drying costs and harvesting after optimal timing can result in yield loss as the grain continues to dry and lose moisture. Arguments are being made to increase statutory reference prices. U.S. Class I railroads originated 27,950 grain carloads during the week ending December 5. 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. Paulson, N. and J. 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Soybean inspections decreased 8 percent from week to week, but inspections of corn increased 18 percent, as shipments to Asia increased significantly. And it never helps when a local grain elevator announces its intent to stop receiving grain. Net soybean export sales were 0.569 mmt, up 40 percent from the previous week. Wheat: To trigger in 67% of the years, soybeans statutory reference price would have to be above $10.10, 20% higher than the current statutory reference price. Costs (total, dollars per bushel, or custom rate equivalent in dollars per mile) can be compared between The farmdoc daily website falls under University of Illinois copyright and intellectual property rights. The University of Illinois farmdoc machinery cost estimates for harvesting include combining, using grain carts, and hauling grain. Although the actual costs will vary from farm to farm, and are dependent on the number of acres and the size or capacity of the equipment used, the averages presented here can be used as a guide. Typically combining costs are expressed on a per acre basis and run about $30.00 per acre ($0.20/bu @150 bu/acre). The additional cost associated with that drive is just one too many, Rubeck said. When it comes to outsourcing harvest operations, often this is the first choice for a number of reasons. 2020: In 2020, the MYA average price of $10.80 was above the 2020 ARC-CO benchmark price. Green Damage nonGMO beans enrolled in the nonGMO program must be delivered to contracted destination. ARC-CO accounts for 86% and 85% of soybean base acre enrollment in 2021 and 2022. WebFor the week ending February 6,unshipped balancesof wheat, corn, and soybeans totaled 22.7 million metric tons (mmt). Besides fundamental supply and demand conditions, myriad other factors determine rates for grain hopper trucks, including basis, export market perspectives, fuel price, inventory, storage costs, back haul availability, and historical rates. For farms with fields in multiple locations, optimal harvest timing may not be reached in a logistical order. As shown in Figure 3, ARC-CO made payments in some counties nationwide. Moreover, raising one crops reference price while keeping the other crops statutory references prices fixed could be politically problematic. Across the country, grain storage capacity has risen sharply in larger facilities, but this doesnt help the smaller operators in more remote, rural areas. Farms that own a grain drying and storage facility may have additional incentive to do all harvest operations themselves. Mo@i$JJW$n++*iG*%r`%xKq|A"[[b5aK #r!s01%+ve)?_*CV+K|"g/XJQ'$MSi9tCLaxr j]. WebIn Table 5, the 1,000 bushel grain cart is assumed to be used on 1,900 acres. And American producers responded in kind this year, with both corn and bean production up 3 percent and 5 percent, respectively, from 2020. Unfortunately, input costs rose dramatically this year, too, as inflation soaked the economy. 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. However, mature soybeans can dry quickly, in a matter of hours, rather than days. "2014 Farm Bill: The Supplemental Coverage Option." farmdoc daily(13):71,Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign,April 18, 2023. ", PLC and ARC-CO for Soybeans: Payments and Perspectives, 2014 Farm Bill: The Supplemental Coverage Option, The Price Loss Coverage (PLC) Option in the 2018 Farm Bill, ARC-CO: Background, Payments, and Perspectives for Corn, ARC-IC: Payment Examples and Revised 2019 ARC-IC Payment Calculator, The Agricultural Risk Coverage County Level (ARC-CO) Option in the 2018 Farm Bill, The Case for Looking at the ARC-IC (ARC-Individual) Program Option, Effective Reference Price Past and Future, Farmland Prices in Brazil More than Doubled in the Last Three Years, Department of Agricultural and Consumer Economics, Department of Agricultural, Environmental and Development Economics. Monticello, IL 61856, 1998-2023 Topflight Grain Cooperative. Yields had to be well below benchmark yields before ARC-CO would make payments. The February price for all wheat, at $9.17 per bushel, is 69 cents higher than January and $3.34 higher than February 2021. We calculated the number of times PLC triggered payments for the nine program crops with at least 2 million base acres. 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. The intent of the survey is to provide producers with additional information to help with their farm management decisions. For example: Location A is offering $13.80/bu for equivalent allows producers to compare the Harvest decisions may also be dependent on requirements of a landlord or business owner.

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