In 2024, Illinois grain farms experienced sharp declines in income, marking the lowest farm operator earnings in a decade, according to new data from the Illinois Farm Business Farm Management Association (FBFM). Despite record corn and soybean yields, low commodity prices significantly reduced returns across the state, while livestock producers benefited from falling feed costs and rising market prices.

The average operator's labor and management income fell to -$104,610, a steep drop from 2023's -$77,131 and well below the five-year average of $158,720. The disparity was stark: grain farms reported losses averaging -$134,744, while dairy farms led income gains with $167,039.

Record Yields Fail to Offset Price Drop

Grain farmers achieved historic yields-corn averaged 234 bushels per acre and soybeans 69 bushels per acre-yet returns still fell. Corn and soybean prices dipped to $4.10 and $9.60 per bushel, respectively, down significantly from 2023. Crop returns dropped to $872 per tillable acre, the second-lowest in five years, falling $422 below 2022's peak.

Rising Costs Ease Slightly, but Remain Elevated

Per-acre fertilizer, pesticide, and seed costs decreased modestly but remain above pre-2020 levels. Fertilizer prices were 26% lower than in 2023 but still 52% higher than in 2020. Capital spending on equipment also dropped 30% year-over-year, averaging $228,799 per farm.

Total production costs in 2024 were $1,221 per acre for corn and $903 for soybeans. The cost per bushel of corn, despite higher yields, was $5.20, the second-highest since 2012. Soybeans cost $12.90 per bushel, the third-highest on record, highlighting the financial stress despite improved field performance.

Livestock Sector Outperforms

Livestock enterprises posted solid gains, with all categories except beef cows showing stronger margins. Dairy producers saw returns above feed cost of $3,423 per cow, a 24% increase over 2023, thanks to milk prices rising 9% and feed costs dropping 10%.

Hog farms, which faced steep losses in 2023, rebounded as higher pork prices and cheaper feed pushed margins above breakeven by about $3 per hundredweight. Feeder cattle operations also posted their highest returns in five years, though replacement cattle costs rose 17%.

Regional and Structural Trends

Farm profitability varied widely by region, with central and western Illinois farms outperforming those in the northeast and southern parts of the state. Grain operations comprised 92% of the 2,009 farms analyzed, and the average farm size grew to 1,332 tillable acres, up 69 acres from five years ago.

Looking Ahead

While some costs are expected to stabilize in 2025-2026, fertilizer prices remain a wildcard. The report underscores the cyclical nature of farming and the importance of strong financial records and management. Over the last ten years, operator income has ranged from -$104,610 in 2024 to a peak of $412,097 in 2022.

With record harvests colliding with weak prices and volatile input markets, the year serves as a reminder that yield alone doesn't guarantee profitability-especially in a policy and trade environment still shifting under global economic pressures.