| redoak - 7/2/2011 19:05
-and in Ontario lots of extra corn as even in crop ins. claim position it makes the most profit
???????. I question that. Spring fixed rate for corn was $3.9/bu and you have no idea what the float rate will look like in November. You are either banking on corn market maintaining this level for big payout or your corn/soybean insurance AFY spread is far enough apart that would indice you to plant corn versus beans. Average producer in our area with a corn AFY of 115/bu and a soybean AFY of 36/bu both at 90% coverage on fixed rate will only have an extra $103/ acre gross from corn in insurance coverage. After you consider the extra drying costs and potentional grade discounts associated with late planted corn and the additional growing costs of corn versus beans it becomes a no brainer in our part of ontario to plant beans. Granted that in certian parts of Ontario like kent/essex those growers would have gravitated to corn. But drive around the rest and the larger part of ontario and it looks like wall to wall beans was the choice for most producers. I may be proven wrong but I suspect that ontario corn acres are down from last year, |
Should we really have been all that surprised....
