Urbana, Illinois
April 4, 2008
Corn appears to be more profitable
than soybeans in 2008 by wider margins than in recent years,
according to a new University of
Illinois Extension study.
"Projections for 2008 indicate that the differences between corn
and soybeans may be even wider than in 2006 and 2007," said Gary
Schnitkey, U of I Extension farm financial management specialist
who prepared the study with colleague Dale Lattz. "Corn is
projected to be more profitable in all regions of Illinois.
"If farmers have acres that could swing to other crop, corn
currently looks like the more attractive alternative."
The report, "Historic and Projected Corn versus Soybean Returns:
Release of FBFM Corn and Soybean Results" is available on U of I
Extension's farmdoc website at
http://www.farmdoc.uiuc.edu/manage/newsletters/fefo08_07/fefo08_07.html.
Summaries of financial data for 2007 from farms enrolled in the
Illinois Farm Business Farm Management (FBFM) program allow the
calculations of actual 2007 returns for corn and soybeans,
Schnitkey said. Using that data, the report identifies
historical trends and operator and farmland returns for grain
farms.
"As acreage decisions are made, the difference between corn and
soybean returns are of particular interest," he said. "In recent
years, the difference between corn and soybean returns has
increased, indicating that corn has become more profitable than
soybeans.
"In northern Illinois, for example, our projections indicate
corn may be $289 per acre more profitable than soybeans in
2008."
by Bob Sampson |
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