Corn is near silking stage in this field near Dunlap. (Photo by Tim Alexander) 

Farmers are facing a grim financial reality along with news of possible record-setting yields: below-break-even prices for their crops, most notably corn. To make matters worse, Congress’ 2018 crop-insurance plan to reimburse farmers for below-average crop prices is failing many growers, according to a U of I ag economist. At the same time, farmers who rent cropland are getting no breaks, price-wise. Please read on for more about this situation … 

Prices slide (again) on bumper-crop expectations 

URBANA — University of Illinois farm economist Jonathan Coppess reported last week that futures prices for the major row crops have been falling over the course of this crop year as generally favorable growing conditions in much of the country have created expectations for a bumper harvest — and possibly record production.  

“Falling crop prices are one of the primary risks that farmers must manage to survive and succeed. Low prices present real challenges to farm income; they are arguably most problematic when basic input costs (e.g., seed, chemicals, fertilizer, fuel, and cash rent) that farmers sink into the ground with planted seeds remain high after prices fall,” said Coppess, in his article, “Decline and Fall of Crop Prices; Perspectives for Policy Design, Not Panic,” posted Aug. 22 on farmdocDAILY.com. 

“The marketing year for corn and soybeans is ending with steep declines in market prices, falling due to the expectations for bumper crops. Farmers have been here before; low crop prices are one of the primary risks that farmers must manage to survive and succeed. Because declining crop prices present real challenges to farm income, panic is not an option for farmers. Panic is, however, a worn-out ploy of political actors that might tempt some because Congress is unlikely to reauthorize the Farm Bill this year,” Coppess said.  

The ag economist went on to add that importantly, farmers have a range of marketing options available with which to manage price risks to farm incomes, such as whether to sell the crop promptly after harvest (for cash and likely at the lowest price point) to storing it for marketing throughout the post-harvest months. Coppess blames the situation on “fundamental flaws in farm policy design,” particularly in the area of payments made to farmers when market year average prices are below government-established thresholds to trigger crop insurance payments. Congress recommends a single nationwide price, or a one-size-fits-all policy design — a national MYA compared to a single fixed reference price — for all farmers with base acres of each program crop. 

“Crop prices are on a steep downward trend at the end of the marketing year, largely the result of expectations for huge harvests. At the same time, Congress has made no progress on reauthorizing the Farm Bill and an extension of current policies appears the most probable outcome. The confluence of the two exposes fundamental flaws in farm policy design and the political demands that have contributed to the impasse,” Coppess said.  

You can read the entire article online at www.farmdocdaily.illinois.edu.   

County cash rent values published 

SPRINGFIELD — Cash rent values for prime farmland in Illinois have not receded despite the sluggish farm economy and two consecutive years of below net-zero returns for many farmers. This is confirmed by the USDA National Agricultural Statistics Service’s Illinois Cash Rent County Estimates report, which was issued Aug. 23. 

For non-irrigated cropland, Piatt County led the state in costliest land at an average of $377 per acre. Tying for second and third were Moultrie and Sangamon counties, where non-irrigated cropland was rented at an average of $369 per acre. At $352 per acre, Macon County had the fourth most valuable cropland for rent in 2024. Johnson County, at just $76.50 per acre, was the location of the state’s least valuable non-irrigated cropland.  

The annual report withheld non-irrigated cropland estimates for 14 of Illinois’ 102 counties, including McLean, Champaign and DeKalb, “to avoid disclosing data for individual operations or insufficient number of reports to establish an estimate,” according to NASS.   

Most counties did not provide information for irrigated cropland. Macon County, at $356 per acre, reported the highest cash rent average for irrigated cropland. Statewide, Illinois farmers paid an average cash rent of $269 per acre for non-irrigated cropland and $277 for irrigated cropland in 2024, according to the report.  

Dems continue net-zero ag emissions goal 

URBANA — In their platform highlighted last week during the Democratic National Convention in Chicago, The Democratic Party reiterated their goal of achieving “net-zero” greenhouse gas emissions. Currently, agriculture is responsible for around 10 percent of all U.S. GHG emissions annually.  

“During (President Joe) Biden’s first days in office in 2021, the White House aimed for a ‘clean energy revolution’ that would put the country on course for a net-zero economy by 2050,” Successful Farming’s Chuck Abbott reported. “(This) was one of the first times (an emissions) target date has been attached to the first-in-the-world goal for agriculture.” 

That pledge will evidently continue under new Dem candidate Vice President Kamala Harris’ presidency, if elected. The platform states that “Democrats will partner with farmers to make the American agriculture sector the first in the world to achieve net-zero emissions, opening up new sources of income for farmers in the process. We will substantially improve water security and ecological health through conservation, protection, and maintenance of our water infrastructure, including water systems for home, commercial, industrial, and agricultural use.” 

According to Farm Progress, the Dem platform includes expanded federal programs to help farmers, ranchers and forest landowners pursue “high-productivity, lower-emission, and generative agricultural practices that improve regional food systems.” (University of Illinois Farm Policy News) 

Database for conservation incentives published 

SPRINGFIELD — The Illinois Sustainable Ag Partnership recently released a new tool to connect Illinois farmers with programs offering financial incentives for on-farm conservation practices. ISAP’s Financial INcentives Database, or FIND Tool, includes information for over 60 financial incentive programs available to Illinois farmers seeking to implement conservation practices on their farms. Visit www.ilsustainableag.org/findtool/.  (ISAP news) 

Illinois Farm Fact: 

Cash rent for Illinois pastureland averaged $43.50 per acre in 2024. (USDA-NASS)