Discussion Board - Can it be profitable to raise corn on small acreag

This is mainly my way of keeping land in the family and giving my toys somewhere to work. We have all the equipment to plow (AC #53), till (IH #35 disc), plant (John Deere 6 row), cultivate (dearborn cultivator) and haul (two smaller gravity wagons). We also have two AC tractors (D17 bar grill, and a WD (with 45 motor), and a Ford 960. I would think that all I would need to purchase would be the fuel, seed, fertilizer applied (lime?, nitrogen?), and the combining. Am I right here? Also what has the corn been bringing lately per acre (Bushels per acre)? BTW it was in the ten year program before and it was taken out for some reason, it was being farmed by a local farmer at that time. I don't care to much for the land programs because I prefer to see the growing crops.

Thanks for any answers you can give.
I asked this question on the allis chalmers website, but I thought that I'd give it a shot on here to. I like to get multiple opinions.

Here's what I'll add. This is simple...

There is a nation of farmers (with years of experience, modern equipment, and plenty of education) that struggle to make $30 to $50 an acre growing corn on a large scale. Their "margin of error" is vastly different than yours. One small mistake, and you make NOTHING. (or even LOOSE)

I see you RISKING several thousand dollars (at the very least) with a REMOTE possibility of making $300 to $400 MAYBE..... but a strong LIKELYHOOD of dumping your investment on the ground.

And with your somewhat limited possibility of turning a profit, and the very high PROBABILITY of a parts failure on that old equipment, I see the potential for a BIG loss....

Better bet???? Buy a lotto ticket..... .!

Was a _total_ disaster last year. The creative part of the operation will use 10 minutes for one project, and 7 hours for the next - tho they look like the very same operation. The new numbers people could not deal with that type of management and made an embarassment of the place. Hope they learned their lesson for this year.

Anyhow, farming is like that. A budget of simple 'universal' numbers plugged in just does not work, as you say.

There is a lot of luck. But mostly planning, on how to make the luck work for you. With 9 acres, one should look to creative marketing. You only get a small production, look for ways to sell it for high dollars. The commodity grains will only give you a few dollars per acre, and in a bad year lose a bit, esp if you are not in the farm program which would give $20 - 40 an acre bonus. There is a lot of risk of a machine breaking & delaying you and costing you a lot to repair, with little chance to recover those costs on the low margins.

If one goes into it as a hobby as Varmmit says and can withstand losing $1000 a year to do it when things go badly a few years in a row, one might break even if you have good luck, already own the equipment, and just plain enjoy it. But the $$$ return will be very low - always, one could do better with creative crops & marketing.

--->Paul

We cannot answer much of your qestions unless you tell us where you are located, rainfall, soil type.

Corn yields range from 80 bu an acre up near Canada to 260 bu in Indiana on top ground - this is top yields, expect less for average. Prices I have recieved in the past 5 years range between $1.20 - $3.01. You need to know your basis - how much less (or possibly more) the local buyers will pay compared to the Chicago Board of Trade. Can be over 40 cents a bushel less in North Dakota, can be 20 cents better in some areas of the southwest & New England. Ear corn is worthless where I am, some regions pay a bonus but those are getting few. Subtract out drying costs. Hiring a combine is around $20 an acre, but will be more for small acreage I'll guess - travel costs.

Seed costs $50 - 180 a bag of 88,000 kernals per bag. You plant about 30,000 seeds per acre depending on your row spacing & seed choice - some prefer 28,000, some 35,000/ acre.

You will need N. You likely will need P & K as well. It is difficult to put all the N on at planting, if your planter has fert boxes. Many areas need lime to make the fert available to the corn, you need to know your ph. If it is high enough, lime is wasted or actually hurts.

Corn uses .8 - 1.2 lbs of N per bu it yields. So, if you are trying for 150 bu corn, you will need to apply 120 - 160 lbs of actual N. P & K you probably will end up putting on 250 lbs of a standard mix every other year & a little with the starter in the planter boxes, but a soil test will really help you.

If you plant corn on corn, you need to boost the N a little bit (it gets used up as the soil microbes break down last year's cornstalks in the ground - 30-40 lbs more) and you will run into insect problems so will need $10 an acre of insecticide with the planter.

Fertilizer cost varies, look for $250 - 300 a ton maybe. It has only been up & up the past couple of years.

To get those top yields I mentioned in addition to good weather, you need an up to date planter, very even seed placement for depth & seed to seed, a good herbicide program ($25-30 an acre) and narrow rows - 30 inch or so. Get sloppy on any of this, & chop off 15-25% of the top yield. Is your planter up to it - what kind?

General, broad ideas, a location & such will help, please ask more detailed questions. My numbers work sorta in southern Minnesota, don't know where you are.

--->Paul