1. Corn, Soybeans and ? ? ? Crop rotations and the economic realities Stan Smith Fairfield County, OSU Extension

2. Disclaimer... Considering the way we’ve done it for decades, some of this may seen extreme... Questions / Concerns ??? No problem, I’m from the government and I’m here to help!

3. The realities... The rules of the game have changed... Unless our present cheap fuel policy changes, or the U.S. dollar get stronger, row crops and related input items will remain in very strong demand... Less interest in livestock production ? ? ? Less demand for costly forages ? ? ?

4. The result... Acres are being converted from hay and pasture lands to row crops Producers are requesting the opportunity to put CRP acres into production. More crop residue is being harvested and fed

5. The course of action... Option #1

6. Option #2, The opportunity... A totally new (?) concept... a THREE crop (plus one?) rotation... Corn, Soybeans, and Wheat (plus a second crop of what ? ? ?)

7. Background For years, hay and forage production has been consistent... In most cases yielding 2 to 4 tons of average quality forage per acre. For years, hay and forage production has been consistent... In most cases yielding 2 to 4 tons of average quality forage per acre. During the same time, corn and other row crop yields have increased nearly two fold. During the same time, corn and other row crop yields have increased nearly two fold. And grain crop values have more than doubled! And grain crop values have more than doubled! The result: cost of traditional forage production per unit of nutrient has increased significantly more than corn! The result: cost of traditional forage production per unit of nutrient has increased significantly more than corn!

8. Avg. Hay Yield by County (ton / acre) 200520062 yr. ave. Athens2.342.152.245 Fairfield3.512.893.200 Highland2.872.602.735 Knox3.232.953.090 Average2.992.652.817 Ohio’s average hay yield was 2.93 tons/ac in 05-06 @ 10% moisture, that’s 2.64 tons/ac dry matter

9. Avg. Corn Yield by County (bu / acre) 200520062 yr. ave. Athens119155137 Fairfield108166137 Highland137154146 Knox145161153 Average127159143 Ohio’s average corn yield was 151 bu/ac in 05-06 harvested as corn silage = 7.35 tons/ac dry matter

10. Result... With high yielding, high valued crops such as corn, soybeans and wheat competing for every acre, there’s far less economic incentive to grow hay for livestock feed.

11. Hay versus Corn Budget OSU Extension, Crop Budget spreadsheets 2.8 tons @ $80 returns negative $53.18 per ac. to L & M ($100/ac rent) 143 bu corn @ $4.90 returns $240.32 per ac. to L & M ($100 /ac. rent)

12. Using the OSU Budgets Hay... 2.8 tons, or 2.5 tons dry matter Total cost of production = $330.56 $0.066 per pound of dry matter nutrient Corn... 143 bushels, or 7 tons silage (DM) Total cost of production = $570 $0.041 per pound of dry matter nutrient Hay versus Corn

13. Using the OSU Budgets Corn, produced at $0.041 per pound of dry matter nutrient is not only less expensive per nutrient to produce, but it has... TWICE as much energy per pound, with Nearly 3 TIMES the productivity per acre! With high land values, productivity is precious! Hay versus Corn

14. Plus … 1. Where do you store your hay? 2. How do you feed it? 3. All things considered, is it time to PLAN to BUNK feed cows in winter and when pasture is resting? (Do we need more feeding pads?)

16. Or...

19. Corn, 2005-07, 151 bushels per acre Corn, 2005-07, 151 bushels per acre Soybeans, 2005-07, 46 bushels per acre Soybeans, 2005-07, 46 bushels per acre Wheat, 2005-07, 67 bushels per acre Wheat, 2005-07, 67 bushels per acre Which is the most profitable ? ? ? Which is the most profitable ? ? ? Using Monday’s (March 3, 2008) cash crop bids, and the OSU Budgets... Using Monday’s (March 3, 2008) cash crop bids, and the OSU Budgets... Option #2, The opportunity... The past 3 years, average corn, bean & wheat yields

20. Corn, $352.89 Corn, $352.89 Soybeans, $354.57 Soybeans, $354.57 Wheat, $335.56 + $23.10 (straw)= $358.66 Wheat, $335.56 + $23.10 (straw)= $358.66 Which is the most profitable ? ? ? Which is the most profitable ? ? ? Environmentally friendly ? ? ? Environmentally friendly ? ? ? Let’s look at “life after wheat” Let’s look at “life after wheat” Option #2, The opportunity... Returns to the land project at:

21. Do we need a place to haul manure nutrients? Do we need a place to haul manure nutrients? Do we need to trap or utilize manure nutrients? Do we need to trap or utilize manure nutrients? Do we need additional forage, or cash grain income? Do we need additional forage, or cash grain income? Double crop soybeans, gross returns: Double crop soybeans, gross returns: 20 bu. X $13.75 = $275 dollars per acre Double crop oat forage, gross returns: Double crop oat forage, gross returns: 4 tons X $100/ton = $400 dollars per acre Option #2, The opportunity...

22. We might even add another crop after corn silage?

23. What’s the cost of running a 3 inch cutter bar? fuel = 0 fuel = 0 oil = 0 oil = 0 grease = 0 grease = 0 repairs = subject to debate (by breed of course) repairs = subject to debate (by breed of course) Doublecrop “forage” harvest options

24. Extending the Grazing Season Is it time to get back to a corn, beans and wheat rotation? And better utilize annuals and crop residues ? Wheat stubble Wheat stubble - volunteer wheat can be grazed! Corn Fodder Corn Fodder - With some grain, 7% protein, 70% TDN - 1 cow, 1 acre, 60 days * with limited or strip grazing - Best utilized immediately after harvest

25. Extending the Grazing Season Cereal Grains - Oats, Rye Late summer, fall plantings Late summer, fall plantings Compliments row crop residues Compliments row crop residues Can be grazed in as little as 60 days Can be grazed in as little as 60 days Rye can be grazed again in spring Rye can be grazed again in spring Excellent nutritional quality Excellent nutritional quality

27. Oats, our most productive FORAGE?

28. Let’s look...