The market told farmers to plant corn in 2007. They didn't stop until 93 million acres later. It was the highest corn acreage since 1944, when U.S farmers planted 95.5 million acres.
Corn farmers in nearly every state increased acres over the previous year, essentially planting another Iowa—the nation's leader in total corn acres—with some 14 million acres.
Those corn acres came at the expense of soybeans in the Corn Belt and Great Plains and cotton in the Delta and Southeast. As corn acres skyrocketed 19%, soybean and cotton plantings plunged 15 and 28%, respectively, compared with 2006.
NEW CORN ACRES. To no one's surprise, traditional king corn states like Illinois, Indiana, Iowa and Nebraska grew corn plantings by 1 million acres or more.
Yet a lot of growth came from new acres outside the Corn Belt. Who could have predicted we'd see the day when Arkansas and Mississippi boosted corn acres nearly 200% or Louisiana by 150%?
Farmers everywhere seemed eager to cash in on the euphoria surrounding corn, even those with little experience growing the crop. The Progressive Farmer profiles five growers who bet on corn, either for the first time in many years or substantially increased acres in 2007. Their accounts show the prowess of America's farmers—when Mother Nature cooperates—for growing food, feed and fuel.
2008 PLANS. Yet even after a successful year of growing corn, farmers are still sorting out cropping plans for next year. They're watching closely to see how the marketplace will allocate acres for 2008. In mid-October, December 2008 futures for corn were nearly $4 per bushel; soybeans, around $9.50; and wheat, $6.80.
"If soybeans stay around the $10 mark, then the only way corn can compete with that for acres is if prices go to $4.15 to $4.25 per bushel," says Bill Griffith, Skene, Miss. "Rice will need to be $5 per bushel minimum to compete with $10 beans."
Operating under such robust commodity markets is a blessing and a curse. Sure, it results in higher gross revenue, but the volatility makes it more difficult for farmers like Griffith to guess what commodity prices will average over the next year as he makes his 2008 planting plans.
Rising input costs, fuel and cash rents also put farmers at greater risk.
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Bill Griffith—Skene, Mississippi
In the midst of the largest rice-producing county in northwest Mississippi—which runs beside wall-to-wall cotton and soybeans—Bill Griffith opted to replace 400 acres of rice and 250 acres of soybeans with corn—for only the second time in his farming career.
The decision to switch was pure economics. "With corn prices hitting the $3.60 mark and diesel costs driving our already costly rice inputs even higher, it just made sense to switch for 2007," he says. "With rice prices being stagnant—along with the GMO issue that was a blow to the rice industry—I just decided to put my corn equipment back to work, which I had since 2003 when I grew it the first time," Griffith says.
Griffith planted corn on his acres that didn't hold water quite as well as the heavier gumbo clay soils—which is required for rice production. "Corn is a neat crop because it grows quickly and is over fast—but I'm still not sure if I'm going to stay with it," he says.
"I'm a rice farmer deep down, and it's been my bread and butter crop that pays for everything—which is the same philosophy as the cotton guys. But since rice and cotton aren't moving up in price like corn and soybeans, our decisions must be driven by economics."
For 2008, Griffith's plans remain up in the air. "As long as this renewable fuel thing keeps rolling along, we'll roll with it," he says.
"But soybean prices are going to be hard to beat if they stay high—because right now (mid-October) I can lock in soybean futures at $9.75—which is hard to turn down. But if no one plants rice and the mills get hurt, will they still be around if corn and bean prices falter? Who knows?" Griffith adds.
FARM SIZE/CROPS. 2,400 acres—rice, corn, soybeans
2007 CORN ACRES. Went from 0 to 650 acres—replaced soybeans and rice
SOIL TYPE. Moderate to very heavy clay soil (rice country)
TILLAGE PROGRAM. Disk and run hippers in the fall to row-up seedbed. In spring, roll the top of the bed; 38-inch rows.
FERTILIZER PROGRAM. 100 pounds dry potash and phosphate applied in the fall. Split applications of liquid urea (40 gallons/acre each)—sidedressed at 5th-leaf stage, then two weeks later. Corn was irrigated five times during the season.
CORN TRAITS/SEED TREATMENTS. Roundup Ready corn—Bt and non-Bt. Didn't need Bt because no insect pressure.
PLANTING DATE/RATE. Mid-March; 32,000 seeds per acre
HERBICIDE/INSECTICIDE PROGRAM. Sequence herbicide (Touchdown + Dual) with a shot of Roundup, applied after emergence. Applied Quilt fungicide at 14 ounces per acre to build stronger stalks and guard against leaf diseases—with goal of yield increase.
SCOUTING PROGRAM. Relied on seed dealer and chemical dealer.
YIELD. 200-plus bushels per acre
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Edward Greer—Rayville, Louisiana
A self-proclaimed high-input for high-yields farmer, Edward Greer reduced his beloved cotton crop by 70% in favor of corn in 2007. And as a partner in a cotton gin, this was no easy decision. After all, cotton has been the lifeblood for this region's farmers for many generations.
"I'll always be a cotton farmer, and hopefully our prices will make a comeback," Greer says. "But I've grown corn for 15 years because it helps in rotation with cotton, and I made the right economic decision this year, thanks to the excellent harvest. We earned the highest yields of any crop I've ever grown."
Not only did Greer commit to corn acres this year, he also built storage to hold 250,000 bushels of grain, which will hopefully pay off this winter due to the high basis at harvest. "We also didn't have to wait in line at the local elevators, and I heard that was taking up to six hours at times," he says.
And while his heart is steeped in tall cotton, Greer does enjoy growing corn too. "This grain, while you have to pay attention to it, can spoil you compared to cotton because it's easier to grow. I'm still in the field with cotton (in early October), plus I had to apply insecticide eight times to stop plant bugs, which gets very costly," he adds.
"For 2008, I'm wrestling pretty hard with what to do. I've committed to grow corn again, but it will still be in rotation with cotton. I just don't know yet how many acres of each I'll grow."
But one thing is for sure: If the price of cotton comes back, Greer's love for the crop will call him back too.
FARM SIZE/CROPS. 5,000 acres—cotton, corn, soybeans, sorghum, rice, wheat
CORN ACRES. Increased acres—from 800 to 2,500 acres.
SOIL TYPE. Lighter-type soils
TILLAGE PROGRAM. Incorporate fertilizer in the fall. Build the beds (38-inch spacing) and roll tops in the fall on heavier soils; wait until spring on lighter soils.
FERTILIZER PROGRAM. Grid soil sample in the fall. Based on soil test, applied variable-rate 50 pounds of nitrogen, 70 pounds phosphorus and 70 pounds potash preplant in the spring. At planting, used starter fertilizer, then sidedressed 150 pounds anhydrous.
When plowing to create furrows between rows for irrigation, applied 100 pounds ammonium sulfate. At tasseling, Greer has experimented with flying on 100 pounds of urea to see if there's a yield boost. Greer yield maps everything to understand what applications work best.
CORN TRAITS/SEED TREATMENTS. Mostly Roundup Ready corn with Bt, and some conventional corn
PLANTING DATE/RATE. Mid-March; 32,000 seeds per acre
HERBICIDE/INSECTICIDE PROGRAM. Used burndown as needed. Broadcast Bicep behind the planter. Applied 1 pound atrazine at lay-by. For insect control, used Poncho seed treatment for early-season insects, then applied Regent insecticide in-furrow. Tried Quilt fungicide on some acres prior to tasseling to see if there was a yield boost. It resulted in an additional 12 to 15 bushels per acre.
SCOUTING PROGRAM. Always watching for insects.
YIELD. Almost 200 bushels per acre
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Eric Wright—Winchester, Arkansas
In southeast Arkansas, in the heart of cotton country, Eric Wright decided to forego his 300 acres of cotton and replace it with corn. This 2,100-acre farmer, who harvested his first crop of 190-bushel-per-acre corn in August, feels he made the right decision.
"I was excited to try the crop, and really enjoyed growing corn—it grew amazingly fast. In fact, next year I think we'll see a lot of cotton acres around here shift to corn, wheat or soybeans—because cotton prices are stagnant compared to these grains, and cotton is a more expensive crop to grow," Wright says.
"In fact I'm about ready to sell my cotton picker because there's not much money left in that crop, especially trying to compete against Pakistan and China cotton."
Wright admits he and other nearby growers are in uncharted territory with this new crop. "I'm fortunate to have a good crop consultant, Charles Denver, who helped me with critical decisions and scouting," he says. "And I thank God too."
Along with being surprised by the corn crop's fast growth, Wright was pleased he didn't need insecticide applications—which is unusual in the bug-laden South.
The biggest challenge he faced was delivery times at harvest since he has no on-farm storage. "The Bunge elevator in Arkansas City took the corn, but it was taking us six to seven hours for a round trip with each semi load. That tells you how much corn this area was delivering. The lines were very long," he says.
Wright's plans for 2008 are to continue with his 300 acres of corn, plus continue growing soybeans, milo and wheat. "But with the current good price of soybeans and wheat, my milo acres may be reduced too. The guys around me cut their cotton acres by 20 to 30% in 2007, and I think that will continue in 2008," he adds.
FARM SIZE/CROPS. 2,100 acres—corn, soybeans, milo, wheat
CORN ACRES. Went from 0 to 300 acres this year (irrigated)—replaced all cotton acres.
SOIL TYPE. Sandy loam
TILLAGE PROGRAM. 100% no-till
FERTILIZER PROGRAM. Applied 0-60-80 preplant and 100 pounds urea behind planting. Applied 300 pounds urea at 5th-leaf stage and flew on 100 pounds urea at tasseling. Added 1 pint liquid zinc with Roundup application.
CORN TRAITS/SEED TREATMENTS. YieldGard with Roundup Ready and Bt traits (rootworm not a problem here)
PLANTING DATE/RATE. March 15 through 20; 2.7 seeds per foot, spaced 5.5 inches apart
HERBICIDE/INSECTICIDE PROGRAM. Roundup for burndown, atrazine preplant and two applications of in-season Roundup.
SCOUTING PROGRAM. Hires crop consultant.
YIELD. Harvested second week of August; 190 bushels per acre
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Scott Miller—Elsie, Michigan
Michigan Corn Grower Association president Scott Miller shifted his 1,800-acre central Michigan farm's corn/soybean rotation in 2007 by 200 acres, in favor of corn.
"I altered my normal 50-50 corn/soybean rotation due to higher corn prices. Even though my 28% nitrogen fertilizer costs doubled for 2007 and triple-stack seed genetics were expensive and hard to come by, I felt it was a good move to add more corn," Miller says.
To help with storage for the added acres, Miller reinforced the walls of a new machine shed he was building in order to store corn in part of it.
"Unfortunately, due to lack of rain this year, I'm expecting yields to be down by about one-third of normal," he says. Despite less rain, Miller is satisfied with his second-year experiment with twin-row corn. "Twin rows almost always outyield 30-inch rows, from 2 to 20 bushels per acre better, so we'll continue that in 2008."
What Miller isn't sure of yet is whether he'll continue with the extra corn acres. "Since I went off my 50-50 rotation in 2007, if I switch every acre to the other crop, then half of my corn will be following corn, which means higher expenses. And right now, the cost of everything is going up, and wheat and soybeans are making big price runs—so corn will have to financially bid for acres with beans and wheat," he says.
Miller says he has enough corn on order to continue his 1,200 acres in 2008, but he plans to keep a close eye on soybean prices—and other inputs costs—before he decides to apply fertilizer this fall. "And that's if I can even get delivery of nitrogen, because suppliers have not guaranteed anything yet," he adds.
FARM SIZE/CROPS. 1,800 acres—corn and soybeans
CORN ACRES. 20% increase—from 1,000 to 1,200 acres; twin-row corn
SOIL TYPE. Varies widely from blow sand to heavy clay, even within same field
TILLAGE PROGRAM. Conventional/conservation. Disk or chisel corn ground in the fall, follow by one or two passes in the spring. Soybean ground is field cultivated before spring planting.
FERTILIZER PROGRAM. 250 to 350 pounds potash in the fall. In the spring, 12 gallons per acre of 10-34-0 starter with 50 pounds 28% liquid nitrogen. Then 3 gallons an acre 6-18-18 pop-up in-row application. Add rest of nitrogen with herbicide application.
CORN TRAITS/SEED TREATMENTS. Some Bt corn, some Roundup Ready corn and some triple stack for corn-on-corn acres (RR/CB/RW). No soil insecticides.
PLANTING DATE/RATE. Mid- to late-April, and no corn planted after May 15; seeding rate for twin rows ranges from 31,000 (on lighter soils) to 36,000 (on heavier soils).
HERBICIDE/INSECTICIDE PROGRAM. Keystone LA (acetochlor and atrazine) preemergence, even on Roundup Ready corn, due to 100% use of Roundup Ready soybeans. Come back with Roundup post as needed.
SCOUTING PROGRAM. Watch weeds, and keep an eye on nitrogen deficiency.
YIELD. Average of 122 to 138 bushels per acre
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Keith Alverson—Chester, South Dakota
The Alverson family farm in east-central South Dakota—father, Ron, and son Keith—have been staunch supporters of ethanol's growth in the state. And since Keith joined the business five years ago after earning his agronomy degree at South Dakota State University, the farm has focused on corn.
"Our bushel commitment to the local ethanol plant, combined with the challenge of inconsistent soybean yields, has driven us to move our operation from 60% corn to 85 to 90% over the past five years," Keith says. "We probably added 5% more acres in 2007. We would have gone higher, but the wet spring delayed planting so we were forced to switch some acres to soybeans."
For 2008, Keith says they're debating crop and acre decisions. "With soybean prices ($9.50 as of late September) encouraging more soybean acres, we may back off a little bit on corn acres—perhaps to 75% to capture better income—especially with fertilizer prices pushing corn input costs another $50 per acre higher in 2008.
"Markets drive crop changes every year. With higher input costs for 2008, soybeans will get a serious look—perhaps on some fields that have two- to three-year continuous corn," he says.
FARM SIZE/CROPS. 2,300 acres (700 acres under irrigation)—corn and soybeans
CORN ACRES. 20% increase over the past five years; now 85 to 90% corn
SOIL TYPE. Clay silt loam, moderate
TILLAGE PROGRAM. Ridge-till since early 1980s. Also chop stalks and use a root slicer to break down the larger root mass of hybrids.
FERTILIZER PROGRAM. Band fertilizer under ridges. Keep soil in medium to high range of phosphorus to achieve yield goal. Dribble 28% nitrogen over top of row as pop-up. Used Soil Doctor past 10 years to apply variable-rate nitrogen. Sidedress anhydrous when corn is 6 inches tall.
CORN TRAITS/SEED TREATMENTS. Used Roundup Ready corn on 100% of acres past two years (but vary herbicide program to reduce risk of glyphosate-resistant weeds). Used Bt and RW traits—or soil insecticide without traits—depending on cost of traits versus insecticide costs (planter set up to handle either option).
PLANTING DATE/RATE. April 20 to May 7 is the goal. 31,000 to 32,000 as a final stand on ridges. Also do variable-rate planting—dryland ranges from 26,000 to 35,000; and irrigated, 23,000 (dry corners) to 34,000 seeds per acre.
HERBICIDE/INSECTICIDE PROGRAM. Harness Xtra as burndown, then come back with post-Roundup application.
SCOUTING PROGRAM. Three passes through field (planting, sidedress and cultivate/ridge building) help keep on top of problems, as well as root digs in later-season corn to watch root protection.
YIELD. Irrigated: 200-plus bushels per acre; dryland: 150 to 180 bushels per acre