 - Logan County corn yields
averaged 213 bushels per acre according to preliminary information
released by the National Ag Statistics Service.
- Soybean yields also were very good at 64.7 bushels per acre.
- Putting these yields in perspective, new ten year averages are
183.57 bushels per acre for corn and 56.85 for soybeans.
- While excellent, the yields didn’t approach the record yields of
230.8 for corn and 66.6 for soybeans.
The lofty yields of 2017 helped greatly toward improving the bottom
line of producers, but did not leave all producers in the black ink
category. Budgets remain tight on local farms due to the cost
squeeze.
Using Gary Schnitkey’s preliminary crop return numbers, corn was
estimated to return $5 per acre in our area using a yield of 225 and
a price of $3.50 for corn with land costs of $270 per acre.
Soybeans were a little brighter with a return of $38 per acre using
figures of 67 bushels per acre at $9.50 and the land cost the same
$270.
One key difference in profitability is the average cash rent for
Logan County hitting $289 per acre, according to the National Ag
Statistics survey for 2017.
Dr. Schnitkey’s figures look a bit less optimistic for 2018 as we
approach planting time, with his projections showing a loss of $63
per acre for corn and a profit of $3 per acre for soybeans.
Play with the yield numbers, crop prices, or input costs as much as
you want. The end result is things have gotten very tight on local
farms. This remains very important since the economic impact on
Logan County is huge.
Using 2017 production, and prices around the first of March, corn
and soybeans produced in Logan County were worth roughly $238
million.
Many items being discussed by the government officials in the state
and national capitols will also affect profitability for the
agriculture sector. The NAFTA agreement is being reviewed, and will
possibly be renegotiated. NAFTA stands for the North American Free
Trade Agreement, and means exactly what it says. The free flow of
agricultural products from our country, into others, has helped
boost an export market, which in turn helps bolster commodity
prices.
The Waters of the United States, better known as WOTUS, is another
item which could reduce regulation, compliance, and enforcement
costs if repealed or enforced at the level of major streams only.
Changes to NAFTA are viewed as negative toward agriculture, while
repeal or reduction of scope for WOTUS would be reviewed as
positive.
Our area of the state is most suited to the row crop production of
corn and soybeans. This is a double-edged sword as yields have
dramatically increased, and the monoculture production has produced
herbicide resistant weeds. New tools for combatting these resistant
weeds have arrived, but not without some contentious moments.
Dicamba tolerant soybeans provide an option for controlling most of
these herbicide resistant or tolerant weeds, but the use of dicamba
has produced damage in areas surrounding treated fields due to vapor
drift. In an effort to minimize off-site damage, additional training
is now required in Illinois for applicators applying dicamba. The
judicious use of the product will maintain its viability as a
herbicide, and minimize its effects on surrounding fields and
residential areas. Dicamba has been used in corn fields for many
years, but application timing has limited the injury potential on
sensitive crops and ornamentals. Application to soybean fields is
traditionally much later in the growing season, and increases damage
potential dramatically. Registration and restriction imposed on
application at the state and national levels will greatly affect
weed control options in the near future. One non-traditional source
of farming has been alternative energy farms. Logan County currently
has one wind farm online, with a second slated to begin construction
shortly.
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Contacts continue to be made
in the area for additional wind farms, and recently for solar energy
farms. While these farms provide an influx of dollars into
communities and government entities, their profitability has been
dependent on so-called “green energy tax credits.”
Another challenge facing the industry is the consolidation of major
agricultural companies. The benefits and costs of these combinations
may be debated for centuries, but one immediate effect is the
reduction in the sources of genetics available for other seed
companies and growers alike. The loss of these germplasm sources can
only be offset by the smaller number of companies developing new
genetic material at about twice the rate they accomplished this feat
only a few years ago. This applies to regular breeding programs and
genetically modified products alike. Review of mergers and purchases
of these major sources of genetic material is also a major policy
decision.
The producers are eternal optimists, and continue to provide a safe
and abundant food supply for all of us. Rains have come to help
alleviate dry conditions in the upper soil layers. The days are
getting longer, and the sunlight is more intense. Grass is greening
up, and robins have reappeared. All these things point to spring,
and another cycle of “sowing the seeds” for the agricultural
community. While there are concerns, most are looking forward to the
spring – and a new season is upon us once again.
[John Fulton]
One non-traditional source of
farming has been alternative energy farms. Logan County currently
has one wind farm online, with a second slated to begin construction
shortly. Contacts continue to be made in the area for additional
wind farms, and recently for solar energy farms. While these farms
provide an influx of dollars into communities and government
entities, their profitability has been dependent on so-called “green
energy tax credits.”
Another challenge facing the industry is the consolidation of major
agricultural companies. The benefits and costs of these combinations
may be debated for centuries, but one immediate effect is the
reduction in the sources of genetics available for other seed
companies and growers alike. The loss of these germplasm sources can
only be offset by the smaller number of companies developing new
genetic material at about twice the rate they accomplished this feat
only a few years ago. This applies to regular breeding programs and
genetically modified products alike. Review of mergers and purchases
of these major sources of genetic material is also a major policy
decision.
The producers are eternal optimists, and continue to provide a safe
and abundant food supply for all of us. Rains have come to help
alleviate dry conditions in the upper soil layers. The days are
getting longer, and the sunlight is more intense. Grass is greening
up, and robins have reappeared. All these things point to spring,
and another cycle of “sowing the seeds” for the agricultural
community. While there are concerns, most are looking forward to the
spring – and a new season is upon us once again.
[John Fulton]
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