2024 Corn and Soybean Profitability Projections

This technical report provides an analysis of the projected profitability for corn and soybeans in 2024, based on recent futures prices and USDA forecasts. It outlines the expected corn stocks at 2.1 billion bushels and soybean stocks at 435 million bushels, indicating an increase from 2020 levels. The report details how lower futures prices have led to a decline in budgeted returns over variable costs for corn and soybeans, with specific figures showing a decrease of $180 per acre for corn and $110 per acre for soybeans since November 2023. It also discusses the volatility of futures contracts and the impact of increased input costs and cash rental rates on profitability. The report emphasizes the need for farmers to update their marketing plans and consider the costs associated with storing grain. Additionally, it addresses the potential financial stress farmers may face and suggests strategies for managing cash flow and risk, including the use of revenue protection insurance. Overall, the report serves as a comprehensive guide for farmers to navigate the economic landscape of the 2024 crop year.