Soybean yields a strategic issue
This presentation is the property of its rightful owner.
Sponsored Links
1 / 12

SOYBEAN YIELDS: A STRATEGIC ISSUE? PowerPoint PPT Presentation


  • 62 Views
  • Uploaded on
  • Presentation posted in: General

SOYBEAN YIELDS: A STRATEGIC ISSUE?. Gary Schnitkey Agricultural Economist. In recent years, corn has become more profitable than soybeans. Main reason: Soybeans Yields Relative to Corn Yields. Rolling 5-Year Average Corn-Soybean Yield Ratios, Illinois.

Download Presentation

SOYBEAN YIELDS: A STRATEGIC ISSUE?

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


SOYBEAN YIELDS: A STRATEGIC ISSUE?

Gary Schnitkey

Agricultural Economist


In recent years, corn has become more profitable than soybeans


Main reason: Soybeans YieldsRelative to Corn Yields


Rolling 5-Year Average Corn-Soybean Yield Ratios, Illinois


Central Illinois (High Productivity) Budgets


Acres for Different Rotations(½ corn – ½ beans in 2004)

--------- Rotation --------

1/2 - 1/2 2/3 – 1/3

2005

corn after beans 50% 50%

corn after corn 0% 17%

soybeans 50% 33%

2006 and years after

corn after beans 50% 33%

corn after corn 0% 33%

soybeans 50% 33%


Economic Returns

  • In 2005, economical to grow corn-after-corn versus soybeans

  • In 2006, 1/2 corn – 1/2 soybeans higher

    1/2 corn – 1/2 beans = $171

    = .5 x $197 corn-after-beans + .5 x $144

    beans

    2/3 corn – 1/3 beans = $163

    = .33 x $197 corn-after-beans + .33 x $149

    corn- after-corn + .33 x $144 soybeans


Sensitivity Analysis *

% Corn-After- Soybean Return

Corn Yield Loss Decrease (per acre)

0% -$34

5% $7

10% $44

15% $83

* Soybean return decrease for more corn than in ½ corn – ½ soybean rotation to be profitable (i.e., long-run)


Break-even Soybean Yields

Corn Soybean Soybean

Yield Cost IncreaseYield *

173 0 41

173 $15 44

173 $30 47

173 $50 50

180 0 43

180 30 49

* Soybean yield for ½ - ½ rotation to remain optimal given previous budgets, this slides corn-after-soybean yield and soybean cost increase


Profitability Differences

  • Evidence that some farms have higher corn enterprise profits than other farms and vice versa

  • See fefo 05-01


Summary

  • Some concern that soybean profits have not kept up with corn profits, largely due to yields. Soybean rust plays into concerns

  • Some farms may be looking at decreasing soybean acres, not uniform across farms or regions


  • Login