RELATIONSHIP BETWEEN SOIL CAPABILITY CLASS AND ECONOMIC RETURNS FROM GRAIN CORN PRODUCTION IN SOUTHWESTERN ONTARIO

Abstract

The "Canadian soil capability classification for agriculture" (Department of Regional Economic Expansion 1969) was tested for its ability to predict the economic profitability of land for grain corn production in Southwestern Ontario. The economic records from 83 grain corn operations were supplied by the Economics Branch, Ontario Ministry of Agriculture and Food. In addition to the itemization of production costs and returns, a soil capability class and productivity index were established for each record as a measure of land quality. Land quality as defined by productivity index was significantly correlated with gross returns and gross margin per hectare. Frequency distributions showed that high gross returns per hectare were three times as likely if the productivity index was between 90 and 100 than if it fell between 80 and 89. High returns per hectare and low cost per ton are indicative of cost controls coupled with high yields. The probability of obtaining this position is best when the highest quality land is used for production. To ensure adequate food supplies at reasonable cost to consumers it is essential that an agricultural land use policy incorporate land quality as one of its basic principles.