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04-09-2017 07:52 AM
herbicide and insecticide difference between corn and beans is sizeable for SW. sw corn boer is 100% infestation every year.
When the traits don't work the spray bills go up $20-30 per acre
Since the foolish refuge in the bag fraud we get to pay for the traits and the insecticide from the plane. That move alone added another $25 per acre to corn.
Then if your lucky and the seed companies add refuge without the same traits, your herbicide kills the 10% refuge anyway.
We all have increased harvesting costs with corn over beans. the transportation alone of 40 bu/acre as opposed to 180 bu/acre is significant even if the "River runs through it". Distance to the river has nothing to do with costs of Production. The basis makes up that freigh, but freight from the field to bin and storage space is higher for corn.
You have to count that fertilizer even if it is already in the soil, your still using it up. It sounds like you are leting the value of land hide some of the costs.
But then expected yield is a big factor..... you may live in one of thos areas where you can raise a section of 180 bushel corn by strapping it to a mule and poking holes in the bag. Then change to a bag of beans and it gets 7 feet tall and makes 38 bushel per acre if your lucky..
For the SW dry climate corn can be an expensive struggle to make our 240 bu/acre, but we expect 70 bushel beans they like the stress and a little heat, and the ever pressent spider mite and 24D laced wind.
So yield expectations make a difference as well.
For us the difference they used was ok for once maybe a little low.
04-09-2017 01:44 PM - edited 04-09-2017 01:45 PM
240 bu/acre, but we expect 70 bushel beans
Dang I got get some KS dirt - We work hard to just get 130 and 25 ! Just shaken my head - sw - If this was the NFL - You'd get a taunting penalty !!!!!!!!!
04-10-2017 06:52 AM - edited 04-10-2017 06:59 AM
We're in a 187 corn and 62 bu bean area the last decade sw. Not that it matters much. For us, yes we have some big corn bins that are paid for that is under-counted I suppose. On the freight it is kind of funny, 8 miles to Big C, or 16 to Poet, we can turn it pretty quick, but beans are all seed that go to Beck's that take an hour to unload gently, so turn per truck is faster in corn. :-)
Not good economics I suppose, but we allocate overhead evenly by acre, not crop. Our view is that we are either in the business or not, and thus an acre farmed is an acre of overhead. Since all the acres get similar cover crops and fertility over a 4 year rotation, the fertilizer is fairly allocated in our view.
Cut to the chase, your climate just makes you non-competitive growing corn it seems. Not my fault, not the market's fault, really comes back to where someones grandfather unhitched the horses the last time. Some of us are lucky vs. KA, some of us are unlucky vs. IL/IA/MN :-)
Interesting benchmarking data, those that live in the great areas in IA/IL actually make less money farming because their land cost is so high, versus EC and I who farm much poorer land that is more reasonably priced. Once you have bid all the benefit of great land into the cost structure, it is no longer a benefit. :-)
04-10-2017 09:13 AM
So your saying U of Illinois should only use local data to reflect local options......... fair enough
Well the way you describe your slight of hand on fertilizer costs and hide the delivery point options to mask the non public bean sales as normal options........... seem to give me a little more trust in U of Illinois cost data....