What is in this article?:
- Economics may lead to reduced wheat acreage in Kentucky
- Oct. 4 futures prices
• High corn and soybean prices could entice some producers to break their typical crop rotation pattern this fall and plant less wheat, as wheat prices are down from a year ago.
Oct. 4 futures prices
Both analyses used futures market prices on Oct. 4, adjusted for new crop basis, which resulted in $5.20 per bushel for corn, $11.30 a bushel for soybeans and $6.20 per bushel for wheat.
Using these figures and subtracting production costs, Halich found it is more profitable for growers in both areas to grow wheat followed by double-crop soybeans rather than plant full-season soybeans.
“There was a $108 per acre net profit difference in the Hopkinsville area and a $23 per acre net profit difference in the Daviess and Union County area in favor of wheat and double-crop soybeans,” Halich said.
“Double-crop soybeans yields would have to drop to 25 bushels per acre in Hopkinsville and 36 bushels per acre in Daviess and Union counties before full-season soybeans were more profitable.”
Continuous corn — corn grown in the same field two years in a row — is more likely an option in the Daviess and Union County area.
When comparing wheat to continuous corn in the area, he assumed average yields of 167 bushels per acre for continuous corn, 65 bushels per acre for wheat, 38 bushels per acre for double-crop soybeans and the same prices from Oct. 4.
Area producers could make a net profit of $72 more per acre growing continuous corn compared to wheat and double-crop soybeans.
“Given the current market conditions, planting wheat followed by double-crop soybeans looks to be a mixed bag for the 2011-2012 year,” Halich said.
“In the Hopkinsville area it looks fairly attractive, but in the Daviess and Union County area, it looks less so.”