Merry Christmas! Please enjoy a safe, prosperious and happy new 2008.
For the present and future, how does one compare the cost of corn
with other options? What are corn prices expected to do? What will
other options do?
$4/bu corn is profitable for most corn farms most years. There are
Volatile corn prices, drought, higher operating cost, the ethanol
threat threatened hesitation to heat with corn. The inconvenience of
loading corn into the hopper and lighting off probably caused the
greatest hesitation for the busy working family with no time and
little toil to spare. The rush is to arrive home and crash after a
stressful day at the office.
Corn farms deserve the profit from a good yield every few years or
so. Easy for me to say but, compared to the smoke filled office
stressed with constant demands, Sun up to sun down labor is a
pleasure working in the fresh ambient air outside on the farm.
Where's the beef? Gross income of $800 per acre raising corn yields
$80K on 100 acres averaging 200 bu/ac at $4/bu. High School Vo-Ag
teaches the value of multiple acres. 1000 acres is consideered
necessary for a family farm to continuously survive in some states.
Mr. Bennett, Farm Press writes, "Like farmers in the Mid-South,
Illinois producers are excited with wheat and soybeans prices. But
they're also checking the math and finding that 200-bushel corn at $4
per bushel "can blow other crops away in profitability. And that's
even with higher N (nitrogen) prices."
The gross goes to pay for corn seed prices that increased from $80/bu
to $176/bu since 2004. With some exceptions and risks to spare, the
bottom line in 2009 for many farms, the drought scare resulted in one
of the best yields of all times. Rainfall came just in time to
rescue most farms from certain failure. For others, the rain never
came and success must wait for another year.
Thanks again for participating with comments and suggestions.
Comments from all sections of the globe may not be conclusive nor
comprehensive but thanks to all for staying on topic.
Merry Christmas and a happy new year.