Corn, Soybeans and ? ? ?

Crop rotations and the economic realitiesStan SmithFairfield County, OSU Extension

Disclaimer . . .Considering the way weve done it for decades, some of this may seen extreme . . .

Questions / Concerns ???

No problem, Im from the government and Im here to help!

The realities . . .The rules of the game have changed . . .

Unless our present cheap fuel policy changes, or the U.S. dollar get stronger, row crops and related input items will remain in very strong demand . . .

Less interest in livestock production ? ? ?

Less demand for costly forages ? ? ?

The result . . .Acres are being converted from hay and pasture lands to row crops

Producers are requesting the opportunity to put CRP acres into production.

More crop residue is being harvested and fed

The course of action . . .Option #1

Option #2, The opportunity . . .A totally new (?) concept . . . a THREE crop (plus one?) rotation . . .

Corn, Soybeans, and Wheat (plus a second crop of what ? ? ?)

BackgroundFor years, hay and forage production has been consistent . . . In most cases yielding 2 to 4 tons of average quality forage per acre.During the same time, corn and other row crop yields have increased nearly two fold.And grain crop values have more than doubled!The result: cost of traditional forage production per unit of nutrient has increased significantly more than corn!

Avg. Hay Yield by County(ton / acre)200520062 yr. ave.Athens2.342.152.245Fairfield3.512.893.200Highland2.872.602.735Knox3.232.953.090Average2.992.652.817Ohios average hay yield was 2.93 tons/ac in 05-06@ 10% moisture, thats 2.64 tons/ac dry matter

Avg. Corn Yield by County(bu / acre)200520062 yr. ave.Athens119155137Fairfield108166137Highland137154146Knox145161153Average127159143Ohios average corn yield was 151 bu/ac in 05-06harvested as corn silage = 7.35 tons/ac dry matter

Result . . . With high yielding, high valued crops such as corn, soybeans and wheat competing for every acre, theres far less economic incentive to grow hay for livestock feed.

Hay versus Corn BudgetOSU Extension, Crop Budget spreadsheets2.8 tons @ $80 returnsnegative$53.18 per ac. to L & M ($100/ac rent)

143 bu corn @ $4.90 returns $240.32 per ac. to L & M ($100 /ac. rent)

Hay versus CornUsing the OSU Budgets

Hay . . . 2.8 tons, or 2.5 tons dry matterTotal cost of production = $330.56$0.066 per pound of dry matter nutrient

Corn . . . 143 bushels, or 7 tons silage (DM)Total cost of production = $570$0.041 per pound of dry matter nutrient

Hay versus CornUsing the OSU BudgetsCorn, produced at $0.041 per pound of dry matter nutrient is not only less expensive per nutrient to produce, but it has . . .

TWICE as much energy per pound, withNearly 3 TIMES the productivity per acre!

With high land values, productivity is precious!

Plus Where do you store your hay?How do you feed it?All things considered, is it time to PLAN to BUNK feed cows in winter and when pasture is resting? (Do we need more feeding pads?)

Or . . .

Or . . .

Or . . .

Option #2, The opportunity . . .Corn, 2005-07, 151 bushels per acreSoybeans, 2005-07, 46 bushels per acreWheat, 2005-07, 67 bushels per acreWhich is the most profitable ? ? ?Using Mondays (March 3, 2008) cash crop bids, and the OSU Budgets . . . The past 3 years, average corn, bean & wheat yields

Option #2, The opportunity . . .Corn, $352.89Soybeans, $354.57Wheat, $335.56 + $23.10 (straw)= $358.66Which is the most profitable ? ? ?Environmentally friendly ? ? ?Lets look at life after wheatReturns to the land project at:

Option #2, The opportunity . . .Do we need a place to haul manure nutrients?Do we need to trap or utilize manure nutrients?Do we need additional forage, or cash grain income?Double crop soybeans, gross returns:20 bu. X $13.75 = $275 dollars per acreDouble crop oat forage, gross returns:4 tons X $100/ton = $400 dollars per acre

We might even add another crop after corn silage?

Doublecrop forage harvest options

Whats the cost of running a 3 inch cutter bar?fuel = 0oil = 0grease = 0repairs = subject to debate (by breed of course)

Extending the Grazing SeasonIs it time to get back to a corn, beans and wheat rotation?And better utilize annuals and crop residues ?Wheat stubble- volunteer wheat can be grazed!Corn Fodder- With some grain, 7% protein, 70% TDN- 1 cow, 1 acre, 60 days* with limited or strip grazing- Best utilized immediately after harvest

Extending the Grazing SeasonCereal Grains- Oats, RyeLate summer, fall plantingsCompliments row crop residuesCan be grazed in as little as 60 daysRye can be grazed again in springExcellent nutritional quality

Oats, our most productive FORAGE?

Lets look . . .

Brewers grain = 140.06 / ton of TDNCorn Gluten feed = 138.89 / ton TDN