Will Soybeans Be More Profitable Than Corn In 2017?

By Jessie Scott

Recent research by the University of Illinois and Illinois Farm Business Farm Management indicate that soybeans will continue to generate higher returns than corn in 2017.

The report, Revenues and Costs for Corn, Soybeans, Wheat, and Double-crop Soybeans, showed that in Illinois returns were higher for soybeans than corn from 2013 to 2015 and that the trend will most likely continue into 2016 and 2017.

There are two main reasons for this shift in profitability:

Since 2006, nonland costs for corn have increased at a higher rate than soybean costs. Specifically, in central Illinois non-land costs for corn rose $288 per acre while soybean costs only moved up $156.
Low commodity prices. When prices were high, the cost increase for nonland inputs didn’t change the profitability of corn relative to soybeans. However, when prices dropped in 2013, corn revenue decreased more than soybean revenue, making soybeans more profitable.

The University of Illinois’s projections for 2016 show that this trend will continue based on yield trends and lower prices, with corn at $3.85 per bushel and soybeans at $10.60.