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| A recent University of Illinois report discusses the ramifications of adding more corn to corn-soybean rotations. |
Report Examines Economics of Adding More Corn to Corn-Soybean Rotations
(12-27-04)
A recent report
from the University of Illinois provides economic evaluations and
other useful information for farmers who are considering adding more
corn to traditional ½ corn—½ soybean rotations.
The report, entitled
“The Economics of Adding More Corn to Corn-Soybean Rotations,”
contends that farmers are increasingly considering adding more corn
to their rotations because “corn has generally been more profitable
than soybeans in recent years.” The recent discovery of soybean
rust may also increase interest in adding more corn, the report says.
The report concludes
that “adding more corn to a ½ corn—½ soybean
rotation often increases short-run returns and decreases long-run
returns, presenting farmers with a tradeoff.” Authors Gary Schnitkey
and Dale Lattz also state that, “Farms with relatively high
yields (165 bu./acre for corn, 45 bu./acre for soybeans) and with
high corn-soybean yield ratios (3.4 or higher) may find adding more
corn advantageous.”
Even if a producer
finds both short-run and long-run analyses indicate more corn may
increase returns, other factors must be considered, the report says.
These factors include risk level, machinery costs, labor and price
adjustments.
To read the entire
nine-page report, click here.