News

Current returns favor soybeans

A new study suggests lower commodity prices favor soybeans.

Gary Schnitkey with the University of Illinois says following the USDA Prospective Plantings report released March 31^st, his department took a deep dive into the profitability of corn and soybeans.

“In central Illinois for 180 bushel corn farmland and soybean fields with average yields of 55 bushels per acre, we currently expect soybeans to be about $22 dollars more profitable than corn.”

He says if commodity prices go lower, the gap favors soybeans even more.

“(the gap) could go up to $61 dollars.  What we generally see is the lower the price level overall, the more it favors soybeans.”

Schnitkey says it’s pretty late in the game for most farmers to switch acres from corn to soybeans, but oftentimes each farm operation has a swing field or two-and based on current prices, should be planted to soybeans.