In the current low-price environment, it is becoming increasingly important for farmers to take steps to ensure they are profitable this growing season and in the years ahead. Gary Schnitkey, Ph.D., professor and farm management specialist at the University of Illinois, discusses where growers need to cut costs in their operations and describes the differences between more and less profitable farms.

Key Takeaways:

• During the past few years soybeans have been more profitable than corn for a few reasons:
  • Costs went up more for corn than for soybeans
  • Prices came down, and lower relative prices favor soybeans more than corn
• Projections for this year:
  • Soybeans will be more profitable compared to corn in Northern and Southern Illinois
  • Corn will be slightly more profitable over soybeans in central Illinois
• The most profitable farms have lower costs and higher yields
• Given the current markets and prices, farmers need to decrease costs to make a profit

1 CEU in Crop Management is available for this webinar. Visit the Certified Crop Adviser website to self-report your credit after viewing the webinar recording.