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| ROI compared to Iowa isn't what's important, it's ROI of one enterprise vs another at YOUR location. There's no way to do it without determining what is more profitable at your location. Sometimes conventional wisdom is conventional for a reason. FWIW, I'm kind of in the same shape as you. I have some ground that has been hay and pasture that is slowly being converted back to, or into, row crop. Most of this was farmed in the 50's the last time row crop prices got too good. My avg yields aren't too far from you, either. Let's take 120 bu corn and 40 bu beans at $6 and $13(pretty much todays prices). That gives a gross return on corn of $720, and beans of $520, and leaves a return to land of something over $350 on corn and $343 for corn. With cattle, it takes about 4 acres "here" to run a pair, including hay ground. If a 500 lb weaned calf is worth 1000 bucks(they aren't today) that is a GROSS return of 250/acre. Your numbers may vary. | |
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Row Crop to Pasture vs Pasture to Row Crop
