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Economics of Alternative Rotations

Economics of Alternative Rotations. North Central Research Association March 11, 2004. Rotation Considerations. Impact on yields Impact on costs, especially nitrogen and pesticides Relative market prices Government program considerations. Rotation Considerations.

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Economics of Alternative Rotations

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  1. Economics of Alternative Rotations North Central Research Association March 11, 2004

  2. Rotation Considerations • Impact on yields • Impact on costs, especially nitrogen and pesticides • Relative market prices • Government program considerations

  3. Rotation Considerations • Seven alternative rotations • Continuous corn, Spring and Fall N • CCCO • CSb • CSbCO • CCOM • COMM • Four N levels • 0, 80, 160, 240

  4. Assumptions • N at $.25 per pound • Corn after corn $164 variable cost • First year corn $152 variable cost • Oats $36 plus P and K removed variable cost; $1.25 per bu., 44, 50 lb. small square bales at $1.75 per bale • Hay $84 plus P and K removed variable cost; $80 per ton

  5. Conclusions • Soil types have significant impact on results • Corn soybean rotation and CSbCO relatively equal in returns • Price does have an impact • Very pronounced yield impacts which are partially offset by N level

  6. Corn on Corn vs. Corn on Soybeans; Long Term Field Studies • Rotation fertility studies from 1979 • Rotations: CC, CSb, CCSb, CCCSb, Sb • 4 N levels: 0, 80, 160, 240 • Data from Ken Peckinovsky and Antonio Mallarino

  7. Conclusions • Evaluate the whole rotation, not a single crop • Soil types have significant influence on results • Corn yields increase for corn following any other crop • Corn/Soybean is the most profitable rotation with CCSb second under normal conditions • Significant pest pressure with more severe impact on soybean yields will influence the results • Market prices influence most profitable rotation but C/Sb still is most profitable

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