How do farmers make money growing corn

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with. Registered in England and Wales. Number May 23, By Christina Dittmer. In an article in the May issue of Iowa State University’s Ag Decision Maker online newsletter, Don Hofstrand, a retired ISU Extension farm management specialist, writes about the profitability of corn and soybean production in Iowa—and what the future may look like over the next several years for these two crops. His analysis shows the revenue, cost and net return for a hypothetical Iowa corn farmer. Returns to corn and soybean production in Iowa have been tracked monthly since year Two forces have been working to change the grain varmers environment of the last few years, he explains. The rapid expansion corh ethanol production is slowing substantially due to market saturation. Also, crop production yields are expected to shift from drought to more favorable growing conditions, thus mobey grain supplies over the next several years. While the exact trend of these variables is uncertain, many analysts expect agriculture to move from the recent historically high grain prices to a considerably lower level. If that materializes, farmers and landowners will face significant adjustments. Grain prices can quickly change maks head in a different direction Hofstrand begins by explaining Iowa’s growihg starting in of farmer income from corn, displayed both as income per acre and income per how do farmers make money growing corn.

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Farmers need to manage nutrients and pesticides carefully to both avoid adverse effects on the environment and to reduce costs of purchased inputs. But farmers also must maintain a production level that will result in profitable returns. How many farmers know what their inputs are, let alone their costs per acre or per bushel? It is hard to trim costs if you don’t know your inputs. Since a total of 1, farmers have participated in the PEPS contest. Profit groups were determined by ranking contestants in quintiles by division, district and year. The variability is mostly due to the way in which fertilizer costs are calculated using yield level and consequent P and K removal rates. Total acre cost of production between the top and bottom profit group is similar, but grower return is not, due to substantially higher yield Fig. Better efficiency lower cost per bushel occurs with higher yields. Table 1. Top corn farmers have 1. Farmers in the top profit group tend to use land with lower yield potential, rotate more frequently, plant about 3 to 6 days earlier, and make 0. PEPS costs underestimate actual costs because not all inputs are accounted for completely. Costs reflect only what can be documented. January, Field Crops Joe Lauer, Corn Agronomist Farmers need to manage nutrients and pesticides carefully to both avoid adverse effects on the environment and to reduce costs of purchased inputs. Results reflect the efforts and costs of the best farmers growing corn on the best land available. Lower yielding fields are often not entered into the contest. Thus, costs are probably higher for most farmers. For a list of website updates, click here. Corn Agronomy. Sunday, January 19, Where science meets the field. Cash corn. Livestock corn.

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This is a constantly moving target, that is never the same, due to many factors beyond our control. Commodity prices fluctuate constantly according to cprn markets, as do most input prices fuel, fertilizer, sprays.

Growing conditions are rarely constant. For example in my area last summer was hot with adequate rainfall and we had near record yields, farmdrs the year before we had a total loss due to a warm wet fall causing the corn to mold in the groqing.

An abnormally wet or dry year as well as an abnormally hot or cool summer will affect yields, possibly by quite a bit. Then the grwing type and exact climate of your area can make a huge difference on yields. For example where I am we can grow decent corn, go 15 miles south and the ground’s too wet, go an hour north and the soil cotn makes it an uncommon crop.

See what I’m getting at here? Then figure in your machinery, labor, land payments, property taxes, or rentand transport costs. It throws some more loops in the. Trending News. Cruise line: Video shows man knew window was open. Florida python hunters wrestle invasive snakes.

Duane Chapman: It’s ‘a lot harder now without Beth’. Experts share what not to do at a funeral. Common not to know of your non-Hodgkin lymphoma? Boy arrested after 4 people killed in Utah shooting. Michelle Obama’s program targeted on her birthday. Answer Save. ERIC Lv 6. Source s : This question really isn’t anywhere near as straightforward as it may seem, and a large number of these variables are ones that we have very little control.

Generally grain crops have a low margin, due to their relative ease of growing, means more producers grow these di, and you need a pretty sizable land base to consistently make a living on these crops. It just depends what kind grow some take some to farmets market and see. It depends upon the crop, fertilizers used, hardwork of the farmer. How do you think about the answers? You can sign in to vote the answer. Still have questions? Get your answers by asking .

How Much Money Do Farmers Make?

Steve Johnson is holding nothing. In Indianola, Iowa, he paces the American Legion hall, walking back and forth down rows of farmers gathered for an annual ag outlook meeting. Beans are up. Sell this weather rally! You do not look away from South American gifts. Johnson, an Extension farm and ag business management specialist with Iowa State University, travels from small town to small town in February mmake to convince farmers to come up with a grain marketing plan, something only half have now, he says. Marketing is the last frontier in corn and soybean production, says Johnson.