Corn expected to be more profitable than soybeans for 2022
Corn is projected to be more profitable than soybeans this year according to an analysis by ag economics professors at the University of Illinois.
Gary Schnitkey tells Brownfield strong corn prices still outweigh high fertilizer costs giving corn a $108 to $227 dollar per acre return advantage over soybeans when planted between April 1st and June 10th.
He says they used maximum yields of 235 bushels per acre for corn and 75 bpa for soybeans and factored in yield declines for later planting dates. Fertilizer prices included $621/ton for 33% nitrogen solution, $987 for DAP and $865 for potash. The calculation was based on $7 corn and $14.80 soybeans.
“Even if we get really late into the planting season, corn will likely still be more profitable than soybeans just given the prices we are looking at. So, sticking with corn throughout the growing season would be what is suggested based on these results.”
He says while the analysis was based on yields and prices in central Illinois, the result is similar for the entire corn belt and could remain for 2023.
“It is highly likely that going into 2023 corn will be projected more profitable than soybeans, so in terms of what that might mean for nitrogen purchases, you may want to start thinking about that sooner rather than later.”
He says the war in Ukraine cuts off a lot of wheat and feed grains from that area, making them more valuable in the US.