to Corn or not to Corn

Corn or not to Corn? That is the question.

Recently I was called by a neighbor wondering what kind of corn contracts were being offered for the 2010 growing season. He called me, because he knew that if I didn't know I would just make something up. I promptly called the three people left in So. Idaho still taking my calls. They were from very diverse areas such as Mormonville (Declo), Drytown (Hollister), and Whatview (View). Did I mention that I will attempt to insult everyone so nobody feels special when I shoot their sacred cow.

Anyway, the result of my incredibly scientific and statistically invalid polling is this: $28 +1 is the current (approximate) market for some common bean contracts, and with the cost of production tilting in beans favor, it makes absolutely no sense for anyone with this option to grow corn for less than $28. The complicating factor is that some areas absolutely suck (in a scientific sense) for growing beans. These areas also tend to have lower corn yields. In this instance, accepting less than $25 will firmly establish your identity as a high-class farm whore for your local dairyman. Now don't go getting your knickers in a bunch over the whore classification. We're all whoring for someone; some for Lamb Weston, some for FSA checks. We've all done it and we all live in glass houses; just admit it and get over it.

I support our dairymen, and believe that they have proven to be a critical economic engine in our state. That being said, I have never known one to offer $70 for hay when they can get it for $60. This is a negotiation, and as such, should be pursued w/out emotion. Make your decisions based on long-term relationships and near-term profitability.