Posted 9/5/01 This yearís corn, soybean yield drop will be costly Lower corn and soybean yields in Minnesota this year will be costly for the stateís farmers. Income loss on a typical 700-acre farm could be over $20,000, according to Erlin Weness, farm management educator with the University of Minnesota Extension Service. Weness says crop production has the potential to fall 15-20 percent below 2000 levels. ìA projected drop in soybean yields of 10 bushels per acre would reduce gross income to producers $52 per acre if the price is the loan rate of $5.15 per bushel,î says Weness. ìIf corn yields drop 17 percent, or 25 bushels per acre, from last year, farmers can expect a gross income drop of $5.50 per acre. There most likely will be little or no loan deficiency payment on corn this year.î Larger expenses for most crop inputs have added to the economic shortfall, Weness points out. Costs for fertilizer, chemicals, fuel and seed have generally been somewhat higher in 2001. Federal payment rates on corn through the Agricultural Market Transition Act will be lower on this year's crop says Weness. Federal oilseed payment rates on soybeans will also be lower. ìIf corn yields drop 25 bushels per acre and soybeans drop 10 bushels per acre from last year, the resulting projected crop income drop would be $28.75 per acre for a farm with half corn and half soybeans," says Weness. ìThat would be over $20,000 for a 700-acre farm.î Weness points out that the figures above are projections, and individual farm yields and prices can vary widely. ìFarmers who are faced with major yield reductions need to reevaluate their cash flow projections and make financial adjustments," says Weness. ìItís also important to keep lenders informed of potential crop shortfalls. If crop insurance is in place, insurers should be notified so that indemnity payments come as early as possible.î ©Post Review