Soybeans More Profitable than Corn
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Soybeans have been more profitable than corn over the last three years, and an ILLINOIS agricultural economist expects that to continue to be the case this year and next.
Gary Schnitkey has updated crop budgets for highly productive central Illinois farmland. It shows, as was the case in 2013, 2014, 2015, & 2016, that planting soybeans will make farmers more money than planting corn this year and in 2018. The cash price of corn will need to exceed $4.00 a bushel if that is to change, at least with soybeans in the high $9.00 a bushel range. Schnitkey in his farmdocDaily article, you can find that online, says there are four points to be aware of as it relates to the 2017 and 18 crop budgets.
- first, these can change as expected yields and price evolve
- second, repeating this, corn needs to be above four bucks if it is to really compete
- third, total returns from highly productive central Illinois soils won’t be as much this year as in 2014, 15, or 16.
- fourth and finally - cash flows are likely to be very tight this year and next.