Agri News, MN
12-11-07
Tigner urges making crop decisions based on good data
By Jean Caspers-Simmet
Agri News staff writer
MASON CITY, Iowa -- As farmers plan for next growing season they need to
make decisions based on good data and calculations, not emotion, said Robert
Tigner, Iowa State University Extension farm management specialist.
"I've heard about ground renting for $325 an acre in Grundy County and land
selling for $7,700 per acre near Protivin," said Tigner during a recent outlook
meeting at the North Iowa fairgrounds in Mason City. "The Grundy County
ground was for seed corn production, and the Protivin sale happened because
neighboring farmers both wanted that particular piece of ground. We hear these
stories, but we have to take into account specifics of the situation."
Tigner discussed tools available online and from county Extension offices to help
farmers get the information they need to make good decisions.
ISU Extension estimates the average cost of producing an acre of corn for the
coming year will be $475 or $3.10 to $3.40 per bushel.
"Costs may be higher due to higher fertilizer and fuel prices or rental rates,"
Tigner said.
Soybean costs are just under $350 per acre or about $7 per bushel, based on
ISU estimates.
"With December soybeans trading at nearly $11, there is some fairly decent
profitability with soybeans," Tigner said. "Some farmers are saying it may make
sense to switch some of those additional corn acres they grew last year back into
beans."
Every situation is different, and with large differences in projected prices, cost
structure and profit potential between corn and soybeans, farmers need to
determine the optimal rotation for their operations instead of just looking at
projected prices, Tigner said.
ISU Extension's Ag Decision Maker Web site offers a Crop Rotation Calculator
that lets farmers estimate the profitability of various rotations. They can use their
costs and yields or costs and county yields provided by ISU Extension.
"Yield and the cost of nitrogen fertilizer really drive decisions on second-year
corn," Tigner said. "On certain soils, there may not be a yield drag. On other
soils, second-year corn is just not a good idea. For some operations, farmers
may want to make site-specific decisions rather than looking at the whole farm."
Because the largest input component for corn is nitrogen fertilizer, farmers need
to make sure they're applying the optimal level, Tigner said. Extension's Corn
Nitrogen Rate Calculator is a tool farmers can use to make that decision.
"I know of a farmer who plowed down a third-year alfalfa stand and applied 200
pounds of nitrogen just to be sure he had enough for 200-bushel corn. He didn't
need to apply any commercial nitrogen to that field. More fertilizer may not mean
more profit."
A tool from the University of Illinois looks at the economics of various machinery
field operations and shows what happens as farmers increase the number of
acres using the same machinery.
Tools on the Ag Decision Maker Web site also provide information on land costs
ranging from worksheets on flexible cash leases to tools that can help a farmer
decide if purchasing a parcel of land makes sense.
Tigner said farmers should consider how marketing and storage affect
profitability. Marketing plans aren't always implemented, and farmers don't
always calculate costs of their storage investment. ISU Extension offers
worksheets comparing grain storage investment decisions and what target price
farmers need to pay for storage costs.