Economic and Marketing Information for Indiana Farmers (Feb. 26, 1971) |
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Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana February 26, 1971 The Southern Corn Leaf Blight-Some Economic Considerations HOW SHOULD I ADJUST my crop program in 1971 in anticipation of probable reoccurrence of the blight? Should I grow more soybeans? What about growing some sorghum? Should I participate in the "set-aside" program? What about growing some Fo corn? Trends in Crop Production Corn acreage has been decreas- 2 ing and bean acreage has been increasing during the past 20 years in the South. In the Corn Belt, acreage was about the same in the late 1960's as in the late 1940's in spite of a large diversion of corn acreage under the Feed Grain Program. Soybean acreage in the Corn Belt has been increasing, but percentage-wise, not nearly as rapidly as in some of the southern states. These long term shifts in crop production are expected to continue and in fact be speeded up by: (a) recent changes in the Feed Grain Land Diversion Program, and (b) impact of the Southern Corn Leaf Blight. 1970 Corn-Soybean Yield Relationships The long time seasonal average normal yield relationship between corn and soybeans in Indiana is fe about 100 bushels of corn per 33 bushels of soybeans. However, by Paul R. Robbins Department of Agricultural Economics because of the blight situation in 1970, soybean yields averaged about 42 per cent of corn yields. Also for 1970, looking at a sample of states representing various sections of the country, soybean yields as a percentage of corn yields, ranged from a low of 23 in Wisconsin to a high of 113 per cent in Alabama (Table 1). Yield relationship of these two crops in 1970 on any individual farm will have considerable impact on the farmer as he attempts to determine what to plant in 1971. This yield relationship maybe particularly important when the farmer is deciding between planting soybeans and blight susceptible corn. In looking at the yield relations in Table 1, corn is a good alternative to many farmers in the Lake States and the northern and Table 1. Yield relationships for selected states in 1970 Soybean yield as per cent of State corn yield Wisconsin 23 Minnesota 31 Ohio 37 Iowa 37 Illinois 40 Indiana 42 Kentucky 56 Georgia S3 Mississippi 108 Alabama 1 13 western parts of the Corn Belt. Soybeans are a very good alternative to many farmers in the South. The decision on whether to grow corn or soybeans will be most difficult across the central and southern parts of the Corn Belt in 1971. Corn-Soybean Price Relationships During the last 5 years of the 1960's, the Indiana price of soybeans averaged 2.3 times the price of corn. Odds seem to favor a more narrow corn-soybean price relationship in the fall of 1971. In mid-February 1971, the futures markets supported local central Indiana contract prices for fall 1971 delivery of about $2.70 for soybeans and $1.35 for corn (beans twice the price of corn). This narrowing of the spread between corn and soybeans greatly effects the relative profitableness of these two crops. With corn and soybean prices that prevailed from 1965-69, a 40-bushel soybean yield and 122-bushel corn yield were about equally profitable. But based on the fall 1971 corn- soybean futures price relationships, a 99-bushel corn yield should be about equally profitable with a 40-bushel soybean yield. Grain Sorghum as a Substitute for Corn Yields being attained on research plots and on a limited
Object Description
Title | Economic and Marketing Information for Indiana Farmers (Feb. 26, 1971) |
Purdue Identification Number | UA14-13-econ197102 |
Date of Original | 1971 |
Publisher | Purdue University. Agricultural Extension Service |
Subjects (LCSH) |
Farm produce--Indiana--Marketing Agriculture--Economic aspects--Indiana |
Genre | Periodical |
Collection Title | Extension Economic & Marketing Information (Purdue University. Agricultural Extension) |
Rights | Copyright Purdue University. All rights reserved. |
Coverage | United States - Indiana |
Type | text |
Format | JP2 |
Language | eng |
Repository | Purdue University Libraries |
Date Digitized | 05/04/2015 |
Digitization Specifications | Original scanned at 400 ppi on a BookEye 3 scanner using Opus software. Display images generated in Contentdm as JP2000s; file format for archival copy is uncompressed TIF format. |
URI | UA14-13-econ197102.tif |
Description
Title | Economic and Marketing Information for Indiana Farmers (Feb. 26, 1971) |
Purdue Identification Number | UA14-13-econ197102 |
Transcript | Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana February 26, 1971 The Southern Corn Leaf Blight-Some Economic Considerations HOW SHOULD I ADJUST my crop program in 1971 in anticipation of probable reoccurrence of the blight? Should I grow more soybeans? What about growing some sorghum? Should I participate in the "set-aside" program? What about growing some Fo corn? Trends in Crop Production Corn acreage has been decreas- 2 ing and bean acreage has been increasing during the past 20 years in the South. In the Corn Belt, acreage was about the same in the late 1960's as in the late 1940's in spite of a large diversion of corn acreage under the Feed Grain Program. Soybean acreage in the Corn Belt has been increasing, but percentage-wise, not nearly as rapidly as in some of the southern states. These long term shifts in crop production are expected to continue and in fact be speeded up by: (a) recent changes in the Feed Grain Land Diversion Program, and (b) impact of the Southern Corn Leaf Blight. 1970 Corn-Soybean Yield Relationships The long time seasonal average normal yield relationship between corn and soybeans in Indiana is fe about 100 bushels of corn per 33 bushels of soybeans. However, by Paul R. Robbins Department of Agricultural Economics because of the blight situation in 1970, soybean yields averaged about 42 per cent of corn yields. Also for 1970, looking at a sample of states representing various sections of the country, soybean yields as a percentage of corn yields, ranged from a low of 23 in Wisconsin to a high of 113 per cent in Alabama (Table 1). Yield relationship of these two crops in 1970 on any individual farm will have considerable impact on the farmer as he attempts to determine what to plant in 1971. This yield relationship maybe particularly important when the farmer is deciding between planting soybeans and blight susceptible corn. In looking at the yield relations in Table 1, corn is a good alternative to many farmers in the Lake States and the northern and Table 1. Yield relationships for selected states in 1970 Soybean yield as per cent of State corn yield Wisconsin 23 Minnesota 31 Ohio 37 Iowa 37 Illinois 40 Indiana 42 Kentucky 56 Georgia S3 Mississippi 108 Alabama 1 13 western parts of the Corn Belt. Soybeans are a very good alternative to many farmers in the South. The decision on whether to grow corn or soybeans will be most difficult across the central and southern parts of the Corn Belt in 1971. Corn-Soybean Price Relationships During the last 5 years of the 1960's, the Indiana price of soybeans averaged 2.3 times the price of corn. Odds seem to favor a more narrow corn-soybean price relationship in the fall of 1971. In mid-February 1971, the futures markets supported local central Indiana contract prices for fall 1971 delivery of about $2.70 for soybeans and $1.35 for corn (beans twice the price of corn). This narrowing of the spread between corn and soybeans greatly effects the relative profitableness of these two crops. With corn and soybean prices that prevailed from 1965-69, a 40-bushel soybean yield and 122-bushel corn yield were about equally profitable. But based on the fall 1971 corn- soybean futures price relationships, a 99-bushel corn yield should be about equally profitable with a 40-bushel soybean yield. Grain Sorghum as a Substitute for Corn Yields being attained on research plots and on a limited |
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