Economics of Different Crop Rotations in New York

Abstract

The 1996 Federal Agriculture and Improvement Act decouples support payments from acreage so grain producers must now devise rotations based on market prices. Economic analysis of rotation studies can identify profitable rotations. The objective of this study was to determine short-term economic consequences of three rotations: (i) continuous corn (Zea mays L.), (ii) soybean [Glycine max (L.) Merr.]-corn, and (iii) soybean-wheat/red clover (Triticum aestivum L./Trifolium praetense L.)-corn. Field-scale trials were conducted from 1993 to 1996 on four farms in New York, and participating farmers performed field operations. Rotated corn yielded greater (140 bulacre) than continuous corn (127 bulacre), whereas soybean and wheat yielded 47 and 55 bulacre, respectively. The soybean-corn rotation had greater net returns ($101/acre) than the continuous corn rotation ($78/acre), despite net returns of $54/acre for soybeans, because rotated corn had greater net returns (%149/acre) than continuous corn. Wheat had negative net returns (-$40/acre) so the soybean-wheat/clover-corn rotation had the lowest net return ($54/acre). Harvesting and marketing of wheat straw would increase net returns of the soybean-wheat/clover-corn rotation to $84/acre. Sensitivity analysis for an 800-acre farm indicated that a soybean-corn rotation had the greatest whole-farm return at 1987 to 1996 New York prices ($55 721). Continuous corn had the lowest whole-farm return ($16 848). With the decoupling of support payments from acreage, New York grain farmers should adopt the soybean-corn rotation to maximize profit. New York grain farmers who market the wheat straw should consider the inclusion of wheat/clover on some of the soybean-corn acreage because close to maximum profit can be achieved while reducing potential pest problems.