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Switch from corn to soybeans? Not so fast!

Kent Olson, Extension Economist
Jeff Coulter, Extension Corn Agronomist

May 25, 2011




With a wet spring and delayed planting, many farmers are thinking of switching from corn to soybean due to potential yield losses in corn as planting is delayed. However, if farmers consider potential net revenue, they may not make this switch as fast as if they consider just the potential yield loss.

Simple supply and demand considerations drive this analysis. Much of the U.S. Corn Belt is suffering from poor planting conditions this year, so total corn production likely will decline. Markets will react and have reacted by pushing corn prices up. And if more farmers switch to soybeans, total soybean production may increase and markets will push soybean prices down. So, since both yield and price are affected, revenue needs to be considered as well as yield.

Using last year's costs of production from the Center for Farm Financial Management's FINBIN database of Minnesota farmers' actual ex…