The success of a crop is generally evaluated on economic yield, where inputs and fixed costs are subtracted from gross profit. Most of the time the crop is evaluated on a per year basis and the decision as to which crop to grow includes market demand as part of the decision-making process. A more sustainable approach to crop economics would look at economic yield by rotation. This would combine inputs and fixed costs for all the crops within a crop rotation, dived by the gross profit of all the crops within that rotation. This would allow a longer-term evaluation of all the crops and could often reflect benefits beyond the actual crop harvested, such as pest management, herbicide rotation opportunities, manure application to fit soils or soil building practices.
Economic Justification for Including Wheat in a Corn-Soybean Rotation2
An example updated from Dr. B. Deen, University of Guelph
Another look at crop economics: Putting the economics to a three crop rotation in Ontario
6.5 bu/acre @ $5.50/bu = $35.75
- 9%–14% increase in soybean yield
5 bu/acre @ $13.25/bu = $66.25
- reduction in nitrogen requirement
26.4 lb/acre @ $0.75/lb = $19.80
- other advantages
- tillage reduction
- yield stability
- opportunity to sell straw
- potential reduction in compaction
- improved soil structure
- spread-out workload
Conservative estimate = $10.00
Total additional profit to wheat is approximately $130.00/acre
Benefits of diversifying a crop rotation include:
- increased subsequent corn yield (average 4%)
- increased subsequent soybean yield (average 11%)
- opportunity for addition of cover crops
- opportunity for manure application
- opportunity for wheat straw sales
- spreading workload over growing season
When profitability is assessed on a full rotation basis, often the economies of scale have resulted in accepting a lower profit per acre.
2Source: Dr. B. Deen, University of Guelph.