By Phyllis Bongard and Jeff Coulter et.al
When prices are low, navigating the corn maize of input costs, marketing plans, and resources can be challenging. Jeff Coulter, Extension corn agronomist, Ed Usset, Grain marketing economist, and Adam Birr, Executive Director of the Minnesota Corn joined moderator Dave Nicolai, Extension educator-crops, to discuss these issues in the February 12, 2025, session of Strategic Farming: Let’s talk crops.
View recordings of this and all Strategic Farming sessions at https://z.umn.edu/StrategicFarmingRecordings
Fine-tuning input costs and production practices
Where can input costs be trimmed without hurting yield? Which practices are most important for maximizing profitability?
Weed management
Weed management is not an area to compromise on. A preemergence herbicide followed by a postemergence herbicide are typically needed for weed control. For a recent discussion on the status of herbicide resistance and weed management tools, see Strategic Farming: Let’s talk crops focused on non-chemical weed control.
Nutrient management
In a recent examination of southern Minnesota farm records over several years, Brad Carlson, Extension educator, noted that the top 20% most profitable farms spent on average about 30% less on fertilizer. He summarized a few ways to reduce fertilizer costs without sacrificing yield in a recent Crop News article.
- Apply the right rate of nitrogen (N) - Follow University of Minnesota fertilizer guidelines. This is the best place to start with a minimal risk to yield loss. In addition, applying nitrogen above the economic optimum N rate wastes money and leaves soil nitrate behind.
- Pay attention to N timing and application methods - With recent shifts in weather patterns, fall applications are at higher risk of loss, particularly without nitrification inhibitors. Timing and application methods matter.
- Split applications of N – Unless you’re on sandy soils or in other situations where losses could be high, split applications of N haven’t consistently paid compared to preplant applications. However, the 2024 growing season was an exception due to the excessive amount of rain early in the season.
- Follow U of MN P and K guidelines – Applying P and K at crop removal rates is expensive and unnecessary, especially when soil test values are high.
- Premium fertilizers – To the crop, a pound of P is a pound of P. The same is true for all nutrients. Purchase fertilizer based on cost per pound and not on claims of increased efficiency or better uptake. The exception is for certain N fertilizers, like ESN, that may be beneficial in high N loss risk situations.
- Fertilizer advisory technology – Are you changing practices based on this kind of technology? If not, then it may not be necessary in a year when the economics are challenging.
For more information, see Are you overspending on fertilizer?
Pest management
If you want to cut costs without hurting yield, apply fungicides and insecticides only after scouting and determining that these products are needed. Make sure that economic thresholds have been met and remember that they have lag times built in to get products applied well before there is any economic damage. Applying insecticides and fungicides below economic thresholds increases selection pressure on pest populations and consequently, the risk of developing pesticide resistance.
Seeding rates
Dr. Coulter has conducted several seeding rate trials the past three years comparing 34,000 to 38,000 plants per acre. Not once has he seen an advantage to the higher seeding rate in continuous corn. Consequently, growers could potentially cut seeding rates to 34,000 and save a little money on seed costs. While it may be contradictory to common practice, he feels that the lower rate is sufficient, particularly since corn can compensate with a larger ear size.
Tillage
While it’s too late for this growing season, eliminating fall tillage on soybean stubble is something to consider. It’s not necessary from a yield standpoint and it sets up the field for significant soil erosion. Save tillage for the spring.
Tips for strip-tillage in 22-inch rows
In university tillage studies, strip-tillage performed as well as moldboard plow and disk rip when farmers used a second pass in the spring to freshen up the berms and remove the residue. This practice can be more helpful in continuous corn and on fine-textured soils.
When using narrow rows in strip-tillage, consider the following tips:
- A coulter-type strip-till machine will work better than a shank-type unit.
- Leave the corn stalks standing and not shredded, since they will flow through the toolbar a little easier.
- Consider turning off the chopping corn head or minimizing the amount of chopping.
- Row cleaners may be needed on the strip-till unit.
- Perform strip-tillage when soil conditions are ideal. This is particularly challenging in narrow rows. You may need to stop other field activities and focus on this when conditions are right.
- Till in between the old rows.
- Alternate approach: Use vertical till in the fall to break down residue followed by a fall strip-till pass. Make a spring pass with an inline coulter unit to freshen up the strips.
Hybrid selection
Find hybrid trial data from as many sources as possible that are tested in growing conditions like yours and then focus on those that are consistently performing in the top 20%. If these hybrids have performed well over multiple locations, it’s likely that they will perform better than the average next year, too. Helpful resources include the following:
Planting dates
The most important thing to do, according to Dr. Coulter, is to get the corn planted in good soil conditions in a timely manner and achieve a good stand. The minimum soil temperature for early corn planting is the mid-40s F and trending stable or upward. If the temperature is trending downward, it’s better to wait because cold soils can cause issues with emergence and root development.
What about planting soybeans early? If it is mid-April, soil conditions are suitable, and you’re past the crop insurance early planting date, it’s fine to plant soybeans first. Soybeans typically withstand early planting and cooler temperatures better than corn does. Planting corn prior to April 20 rarely produces a benefit, but once the 20th rolls around, the focus should be on corn planting. Planting date yield trials have indicated that yields are highest when corn is planted during the last week of April and first week of May. After May 10, the yield penalty for delayed planting starts increasing.
For more information see Soybean planting date, seeding rate and seed treatment recommendations from the University of Wisconsin.
Marketing maize
Trade wars
How might a trade war impact prices? While there is a lot of talk about trade at this time, it’s not clear where this will go. However, we have some historical data from 2018 when a trade war was announced in mid-May. From early May to mid-July, the cash prices fell 20% for corn and soybeans and 15% for wheat. Ed Usset reinforces that this is not a prediction for today but rather a reminder of how trade can impact prices when it’s done wrong.
How important is trade to the U.S.? Fifty years ago, we exported 24% of the corn crop. The projection for the 2024 corn crop is 16% so it appears that we’re losing ground. However, ethanol was introduced in the last 30 years and it has taken a large chunk of that production. We still export more corn than any other commodity. Corn and corn products headed to the export market added $5 billion in value to the Minnesota economy.
Soybean and wheat exports have been stable for decades. Generally, 40 to 50% of the wheat crop and around 40% of the soybean crop is exported annually. The U.S. has been a major grain exporter for years.
There has been significant growth in other export products since 1974. Pork, chicken, and beef exports were less than 2% fifty years ago. Now, 25% of the pork produced in 2024 is projected to be exported. Beef exports have grown to 11% and chicken to 16%. Corn is also exported as a value-added component of these meat products. The bottom line is that trade is important for U.S. agriculture.
For more information, visit The Value of U.S. Grains Exports to our Economy, and Export Statistics from U.S. Meat Export Federation.
Old crop pricing
What is the outlook for unpriced corn in the bin? Over the past two months, there was a post-harvest rally in cash prices, so the question is should I hold the corn unpriced or take advantage of the rally? Usset studied April, May, and June (AMJ) cash price patterns from Iowa, which are similar to Minnesota patterns, and compared them to January highs. In general, AMJ prices are typically higher than the January high about 80% of the time. Since 2000, however, all years with a post-harvest rally saw AMJ prices significantly or modestly higher than the January high, leading Usset to feel better about grain in the bin.
New crop pricing
There has also been a rally in new crop futures prices, as well. When the AMJ high in December corn futures was compared to the high price established in January, AMJ was higher 80% of the time over the past 21 years. While this isn’t predictive and there are no guarantees, the odds are favorable for new crop AMJ prices.
Corn and soybean basis
The basis has softened in corn and soybean. This is largely due to the rally in futures prices which, in turn, raised prices. It’s also a new tax year and people are taking advantage of that and selling grain. Usset expects the selling to slow down and the corn basis to firm up during the May-June period.
Minnesota Corn
Minnesota Corn is the umbrella over two organizations: Minnesota Corn Growers Association (MCGA) and the Minnesota Corn Research and Promotion Council (MCR&PC). While these are two separate, independent organizations, they meet jointly and work together closely. One of the tenets of Minnesota Corn is to add value to the corn that is produced in the state. Ethanol plants, livestock operations, and other processing options translate into expanded marketing opportunities for producers.
MCGA has the membership side and is the 2nd largest corn membership organization in the country. Every now and then, they take pride in taking the top spot away from Iowa.
MCR&PC handles the check-off, which is used for research, promotion, and education. Approximately 28% - over $2M - of the check-off dollars go toward research focused on crop productivity and new uses and those results help inform policy development. The University of Minnesota appreciates significant support from MCR&PC for research and education.
Research
MCR&PC’s has three major research goals: 1) discover new or increasing uses of corn, 2) discover best practices that maximize sustainable production, and 3) increase profitability for farmers. Production and environmental stewardship projects cover education & outreach, nutrient management and water quality, pest management, soil health and climate, and irrigation. In the expanded use category, projects focus on sustainable plastics, fuels, and grain quality.
Utilization
New uses
MCR&PC has invested significantly in the University of Minnesota’s Center for Sustainable Polymers over the past five years. In that time, several start-up companies have spun off. The global demand for green technologies is allowing these new technologies to become more competitive with petroleum-based products:
- Valerian Materials – MPD used in adhesives, sealants, and other polyurethane products. MPD is a polymer precursor that can be made from corn-based sugars.
- Låkril Technologies – Based out of Chicago, Låkril turns corn-based sugars into acrylics.
- MN SAF Hub – Sustainable aviation fuel (SAF) will be blended at the Flint Hills Resources' Pine Blend refinery in Rosemount supplying the MSP International Airport. One partner, Delta Air Lines, has aggressive goals for incorporating SAF into their fuel supply.
Ethanol
MCR&PC has made significant investments in ethanol since 2008. Sales of E15 in 2024 surpassed 2023 sales by 11.9% with a grand total of 143M gallons sold. Hundreds of stations now sell UNL88 at lower prices than UNL87, providing value at higher octane levels.
Ethanol had a banner year for exports in 2024 and MCR&PC hopes to build on that.
Source : umn.edu