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U of I: Corn-Corn-Bean rotation more profitable
Longer-term, heavier corn rotations net better returns than straight corn-soybean rotation across Illinois.
John Hawkins
Published: Feb 2, 2012
In many areas of central Illinois, corn-after-corn yields were substantially below corn-after-soybean yields in 2010 and 2011. These yield drags, along with large increases in corn costs, have led some farmers to reevaluate corn-soybean cropping decisions.
For land productivities that predominate in Illinois, corn-after-corn and continuous corn usually have higher budgeted returns than soybeans. However, more intense corn rotations reduce corn-after-soybeans acres, often some of the most profitable acres on a farm. Reduction in corn-after-soybean acres will impact returns in future years.
Rotation Returns
Longer run implications of current year cropping decisions can be analyzed by calculating rotation returns given stable rotations. Rotation returns for three rotations are calculated:
1.Corn-soybeans. This rotation has 50% of its acres in corn and 50% in soybeans. The rotation is one year corn and the next year soybeans. Given a stable cropping rotation over time, corn-soybeans has an average return of $484 per acre, the average of $578 for corn-after-soybeans and $390 for soybeans after corn (i.e., ($578 + $390) / 2).
2. Corn-corn-soybeans. This rotation has 2/3 of its acres in corn and 1/3 in soybeans. The rotation is corn in a field for two years, followed by a year of soybeans. Given a stable cropping rotation, corn-corn-soybeans has an average return of $504 per acre (i.e., ($578 corn-after-soybeans + $510 corn-after-corn + $425 soybeans-after-corn) / 3).
3. Continuous corn. Continuous corn has a return of $467 per acre. This assumes that yield reductions relative to corn-after-soybeans have occurred and corn averages 180 bushels per acre over time.
U of I farm management specialist Gary Schnitkey says cash rent arrangements that are short-term may encourage more corn production. He says if a farmer believes that they will only be able to rent a farm for one year, there is an incentive to plant all corn so as to maximize profits in one year.
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