By the numbers
Amount of Indiana corn used for ethanol
38 million: Bushels distilled in ethanol in 2005
152 million: Projected bushels of corn distilled in ethanol in 2007
What it costs
$222: Cost per acre of corn in 2006
$239: Projected cost per acre of corn in 2007
SOURCE: Christopher Hurt, Purdue University
By JOSEPH S. PETE, Daily Journal of Johnson County staff writer
Some farmers have been joking that they would plant corn on their front lawns this season if they could.
But high corn prices haven't sold everyone on growing more corn than usual. At least half of Johnson County farmers plan to stick to their usual split of corn and soybeans this year.
Soybean prices have stayed high, at more than $7 a bushel this year.
Lavern King, owner of King and Sons Farms, didn't think the price of corn, which peaked at more than $4 a bushel during the winter, was worth the trouble to plant more.
Although the price of corn has nearly doubled from past years, his sons decided to plant the traditional 50-50 split between corn and soybeans this season.
Farmers normally don't plant corn on the same land season after season. But an increasing demand for ethanol, which is made from corn, has made the crop more valuable.
The costs of growing corn have risen and should continue to go up, Purdue University agricultural economist Christopher Hurt said.
At least half of local farmers don't plan to change their normal crop rotation, Johnson County Farm Bureau president Tracy Mabry estimated.
Brian Catt, county executive officer for the federal Farm Services Agency, said that based on conversations he has had with farmers, he doesn't expect the corn acreage in the county to increase substantially. He said it will go up only 10 percent at most.
"It should only be a little more than normal," he said. "A lot of people are sticking to their normal rotations."
A tight supply of seed may have dissuaded some from cashing in on the increased demand for corn, Catt said.
The cost of fertilizer, seed and chemicals have risen during the past year, in some cases before the price of corn went up. The total cost of raising an acre of corn has gone up 7 percent, Hurt estimated.
Raising more corn didn't make financial sense to many farmers with the added costs, Catt said.
"We're doing it the same as always," King said. "When corn goes up, your other expenses go up accordingly. You can't win but for losing."
The higher cost of growing corn makes planting it on added acreage risky, especially with poor weather for crops predicted, Catt said. Also, investors may stop bankrolling new ethanol plants with such a high price for corn, causing the demand to drop, he said.
"Every farmer gambles on the weather and the markets year in and year out," he said. "And he has no control over either."
Scott Logsdon purchased his seed last fall and didn't consider planting more corn this year. The price of corn would have to be higher to persuade him to grow corn two or more seasons in a row, maybe $5 per bushel, he said. And it would have to stay there.
He's not optimistic. The market's already flooded with corn, an estimated 90.5 million acres this year, he said.
Logsdon said he cares more about the quality of his soil than turning a high profit this year. He hesitates to plant any more than usual.
Not rotating crops in a field creates too many problems, including an increased susceptibility to pests such as rootworm, Logsdon said. And he doesn't want to deplete the nitrogen in his soil.
A wet fall influenced Charles Canary's decision not to plant more corn. Soybean prices stayed strong enough not to tempt him to plant more corn. The weather has required him to take more time to get his ground ready.
If many farmers can't plant their corn by mid-May, they'll be forced to switch to soybeans, which can be planted later, Canary said.
The traditional 50-50 split is always a good hedge against both the weather and market fluctuations, Canary said.
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