Are you operating a corn business? Here’s some corn news that might get you thinking about new ways to do business.
According to the recent October Kiplinger report, “bigger is not always better when it comes to corn growing operations.”
Results from a USDA study suggest that small, organic operations come out on top in terms of profit.
After analyzing small (less than 250 acres) and large (more than 1,000 acres) corn operations, the report uncovered the following:
- 2010 production costs per bushel harvested for large and small corn businesses were comparable, at about $2.50 per bushel regardless of farm size.
- Big corn operations had lower overhead expenses, but almost all operating costs (seed, machinery, fertilizer, fuel) were lower per acre on the smaller-sized corn operations partially due to the fact that smaller businesses use less commercial fertilizer and perform crop rotation with soybeans, which enhances corn yields.
- Overall, organic corn revealed more profitable per acre than conventional corn.
- Total costs of harvesting organic and conventional corn are about the same, but organic operations can get away with higher sale prices. This fall, conventional corn has sold at a high of $3 per bushel, while organic corn gets about $10 per bushel – a huge difference!
Good news for the little guys of corn!
If you run a corn operation – large or small – AgAmerica can help support, service, and finance your agricultural business. Whether you want to turn your operation organic or finance operating costs, our ag lending experts will communicate with you to determine the right agriculture loan, at the right rate, for your business. AgAmerica farm loans feature low interest rates and flexible payment plans – reasons why farmers and ranchers choose agriculture loans by AgAmerica. Plus, the ag loan process is made simple, pain-free, and personal. We’ll work with you side-by-side to determine the best farm loan for your business!