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ATTRA is the national sustainable agriculture information service, operated by the National Center
for Appropriate Technology through a grant from the Rural Business-Cooperative Service, U.S.
Department of Agriculture. These organizations do not recommend or endorse products,
companies, or individuals. NCAT has offices in Fayetteville, Arkansas (P.O. Box 3657, Fayetteville,
AR 72702), Butte, Montana, and Davis, California.
By Preston Sullivan
NCAT Agriculture Specialist
February 2003
SUSTAINABLE CORN AND
SOYBEAN PRODUCTION
AGRONOMY PRODUCTION GUIDE
Abstract: Sustainable agriculture renews the environmental, social, and financial resources on which farming depends.
This publication discusses the relationship of corn and soybeans to overall farm sustainability and suggests ways to
improve the sustainability of corn and soybean production. Two farmers are featured who have found ways to grow corn
and soybeans more sustainably. Also discussed are diversification options that are inherently more sustainable than
annual row crops.
IntrIntrIntrIntrIntroduction: Isoduction: Isoduction: Isoduction: Isoduction: Is
gggggrrrrrooooowing corwing corwing corwing corwing cornnnnn
and soand soand soand soand soybeansybeansybeansybeansybeans
sussussussussustttttainable?ainable?ainable?ainable?ainable?
For agriculture to be truly
sustainable it must do three things
at the same time:
• Enhance the environment
• Support the farm family at an accept-
able economic level
• Benefit the local community
Gyles Randall, a soil scientist at the University of Min-
nesota, states that corn and soybean production in his area does not appear to be sustainable in any of
these aspects. The bottom line, Randall says, is that “we will need substantial changes in federal farm
policy, cropping systems and usage of crops produced on the farm to sustain a healthy environment
and rural community” (1).
Let’s take a look at each of the three basic principles of sustainability as they relate to corn and
soybean production and look for opportunities for progress.
©www.ClipArt.com2002
Table of Contents
Introduction: Is growing corn and soybeans sustainable? ........................................................ 1
Breaking Out of the Conventional Paradigm.............................................................................. 3
Perennial Agriculture .................................................................................................................. 6
References ................................................................................................................................. 7
//SUSTAINABLE CORN AND SOYBEAN PRODUCTIONPAGE 2
ENVIRONMENTAL SUSTAINABILITY
To be environmentally sustainable, corn and
soybean farms must protect soil and water. The
two most common pollutants from corn and soy-
bean production are soil sediments and nitrates.
The main source of soil entering waterways is
bare ground created by tillage. Poor soil health,
excessive fertilizer use, and inappropriate tim-
ing of fertilizer application cause nutrient runoff
and leaching. Additionally, tile drainage hastens
the movement of nutrients from fields to water-
ways. Sustainable agriculture practices keep soil
in the fields and prevent its movement into wa-
terways. I will discuss these issues in more de-
tail below.
ECONOMIC SUSTAINABILITY
To be economically sustainable, corn and soy-
bean farms must generate a reliable profit mar-
gin every season. Given current economics, com-
modity producers have little control over the
price they receive for their products. The farm-
ers become, in essence, “price takers,” in that they
take what they can get for their crop. With com-
modity prices flat or in decline, and cost of pro-
duction going up, it is easy to see why so many
farms are going out of business.
According to a 1998 report of the USDA Com-
mission on Small Farms (2): “As farmers focused
on producing undifferentiated raw commodities,
food system profit and opportunities were
shifted to the companies that process, package
and market food.” The result: since 1980, farm-
ers’ share of consumer spending has dropped 13
percent, while other food-system sectors are en-
joying record profits.
As more contract arrangements develop be-
tween agribusiness and farmers, the farmer in-
creasingly turns more decisions over to others
and plays the role of indentured servant. Unless
prices rise dramatically, corn and soybean pro-
ducers will need to find ways to differentiate
their products in order to tap markets that pay a
premium.
SOCIAL SUSTAINABILITY
Sustainable rural communities require a vig-
orous local economy based on successful, in-
come-generating farms. Unfortunately, farmers
dependent on corn and soybeans are losing their
farms in great numbers and moving elsewhere
to find jobs. Overall, the U.S. lost 219,500 farms
between 1981 and 1986, as those fields were
merged into larger operations (3). Figure 1 shows
the decline in farm numbers from 1900 to 1997
(4). The perennial lack of profitability in com-
modity-crop agriculture is evident in the ratio of
prices paid for inputs to prices received for com-
modities sold. Figure 2 shows declining ratios
of sales prices to input prices (4). The net effect
is lower profit margins for producers. With fewer
people to support the local economy and pro-
vide a tax base, businesses, churches, and social
organizations close their doors. Also, schools and
hospitals consolidate in larger towns and are less
able to serve rural people. All of these trends
affect the quality of life for those who remain on
the land.
FFFFFigurigurigurigurigure 1e 1e 1e 1e 1. N. N. N. N. Number of fumber of fumber of fumber of fumber of farararararms durms durms durms durms duringinginginging
ttttthe 20the 20the 20the 20the 20th Centurh Centurh Centurh Centurh Centuryyyyy
Source: National Agricultural Statistics Service, USDA.
Source: National Agricultural Statistics Service, USDA.
Figure 2.Figure 2.Figure 2.Figure 2.Figure 2.
//SUSTAINABLE CORN AND SOYBEAN PRODUCTION PAGE 3
BrBrBrBrBreaking Out of teaking Out of teaking Out of teaking Out of teaking Out of thehehehehe
ConConConConConvvvvventionalentionalentionalentionalentional
PPPPParararararadigmadigmadigmadigmadigm
ECONOMIC OPPORTUNITIES
Economic sustainability increasingly de-
pends on selecting profitable enterprises, sound
financial planning, proactive marketing, and
good management. The bottom line is that the
farmer needs good financial planning tools and
the willingness to follow a financial management
plan. When the plan reveals that the economic
risks of the current farm enterprises are high, it
is probably time to look at alternatives. All the
good financial planning in the world cannot help
you if you are faced with prices out of your con-
trol and changing government policies that may
impact your income or costs.
The comprehensive financial planning pro-
cess used in Holistic Management™ begins by
planning income, then allocating a planned profit
as the first expense item. The remaining income
is allocated to cover production costs. This ap-
proach requires that costs never rise to the level
of anticipated income—thus preserving a profit.
This potent financial planning process empow-
ers people to make decisions that are simulta-
neously good for the environment, the local com-
munity, and the bottom line. The holistic finan-
cial plan provides a roadmap to help people navi-
gate through their financial year, assured that the
profit will be there at year’s end. Learn more
about this process by requesting the ATTRA pub-
lication entitled Holistic Management.
If none of this sounds appealing, consider hir-
ing a marketing consultant based on his or her
track record of positive results. Ask bankers,
neighbors, and the Extension Service for recom-
mendations. Study and use the futures market
to ensure adequate future income (5). Look at
buying options as an insurance policy. At the
very least, project your crop income based on the
futures price, and plan expenses so that a profit
is expected. Throughout the season, stay on track
toward that profit by monitoring spending.
The key to economic survival may lie in ex-
ploring other income opportunities. These in-
clude contract growing of seed corn, specialty
corn, food-grade soybeans, or popcorn. These
options are not for everyone; only a certain num-
ber of acres of these crops can be grown because
of their limited markets. Alternative row crops
may be a viable option to lengthen a corn or soy-
bean rotation; learn more about them from the
ATTRA publication Alternative Agronomic Crops.
Certified organic production is another op-
tion. “Organic” not only means new market op-
portunities but practices that are generally more
ecologically sustainable. However, the mainte-
nance of bare ground through tillage and culti-
vation typical of organic corn and soybean pro-
duction is not sustainable. For more informa-
tion on organic production and certification, see
the ATTRA publications Overview of Organic Crop
Production, Organic Farm Certification and The Na-
tional Organic Program, Organic Field Corn Produc-
tion, and Organic Soybean Production. For more
information on alternatives to tillage, see
ATTRA’s Conservation Tillage and Pursuing Con-
servation Tillage for Organic Crop Production.
The introduction of genetically altered crop
varieties has been greeted with both hope and
caution by farmers. It is wise to stay current on
market trends in genetically modified crops.
Market uncertainty surrounds crops like Bt corn
and Roundup-Ready™ soybeans. Though ge-
netically modified crops are being grown on a
large percentage of U.S. acres, there still remains
significant resistance to buying them in key ex-
port markets, especially Europe and Japan.
Farmers who choose to plant these crops should
be aware of this market uncertainty. Read more
about GMO crops in the ATTRA publication Ge-
netic Engineering of Crop Plants.
©www.ClipArt.com2002
//SUSTAINABLE CORN AND SOYBEAN PRODUCTIONPAGE 4
Producers should also be aware that some
buyers, including major grain traders like Archer
Daniels Midland (ADM), have offered farmers
price premiums for non-GMO crops, providing
a market niche for standard varieties. Whether
the non-GMO market continues to offer a pre-
mium, and whether it grows or shrinks over time,
remains to be seen.
SUSTAINABLE MANAGEMENT
ALTERNATIVES
One way to increase the profitability of corn
and soybean production is to reduce input costs
and build drought-hardiness through sustainable
management practices. The connection might
not be obvious at first but will become so with
the understanding that one of the greatest threats
to agricultural sustainability is soil erosion and
reduction in soil quality. Erosion is initiated by
raindrop impact on bare soil. Any management
$17/acre/year to pump irrigation water to com-
pensate for lost soil water-holding capacity (8).
The total cost of soil and water lost annually from
U.S. cropland amounts to an on-site productiv-
ity loss of approximately $27-billion each year
(6). These costs do not include the additional
losses to society as a whole from reduced air
quality, pollution of surface waters, and dredg-
ing of streams and drainage ditches.
Erosion is not the sole source of nutrient loss
from non-sustainable cropping. There is also sig-
nificant loss to leaching. Nitrates, in particular,
pose pollution problems by leaching into ground-
water or moving through tile drains into ditches
and surface waters. Dr. Otto Doering of Purdue
University estimates that widespread implemen-
tation of two best management practices
(BMPs)—cessation of fall fertilization and re-es-
tablishment of riparian wetlands along water-
ways—could reduce nitrogen runoff by 20% (9).
Runoff from fields farmed
organically typically carries
less nitrate; in an Illinois
study, researchers showed
that nitrate levels in organic
corn fields were half those
found in conventionally
farmed fields (10). The ex-
ception to this came shortly
after a legume green-ma-
nure crop had been incor-
porated in the organic fields in preparation for
corn planting; at that time, nitrate levels were the
same in organic as in conventional.
However, for farmers to effectively plug nu-
trient leaks caused by erosion and leaching, more
than BMPs are required. Serious changes in pro-
practice that protects the soil from raindrop im-
pact will decrease erosion and increase water
entry into the soil. Mulches, cover crops, and
crop residues serve this purpose well. For more
information see the ATTRA publication Drought
Resistant Soil.
The major costs to the farm associated with
soil erosion come from the replacement of lost
nutrients and reduced water-holding ability, ac-
counting for 50 to 75% of productivity loss (6).
Eroded soil typically contains about three times
more nutrients than the soil left behind and is
1.5 to 5 times richer in organic matter (6). Table
1 shows the effect of slight, moderate, and se-
vere erosion on organic matter, soil phosphorus
level, and plant-available water on a silt loam
soil in Indiana (7).
When erosion by water and wind occurs at a
rate of 7.6 tons/acre/year it costs $40 per year to
replace the lost nutrients as fertilizer and around
Cover crops, Shinbone Valley, TN (photo printed
with permission)
Erosion Organic Plant-available
level matter Phosphorus water
% lbs./acre %
Slight 3.0 62 7.4
Moderate 2.5 61 6.2
Severe 1.9 40 3.6
TTTTTable 1able 1able 1able 1able 1. Ef. Ef. Ef. Ef. Effffffect of erect of erect of erect of erect of erosion on orosion on orosion on orosion on orosion on orggggganic mattanic mattanic mattanic mattanic mattererererer,,,,,
phosphorphosphorphosphorphosphorphosphorus, and plant-aus, and plant-aus, and plant-aus, and plant-aus, and plant-avvvvvailable wailable wailable wailable wailable watatatatater (7).er (7).er (7).er (7).er (7).
//SUSTAINABLE CORN AND SOYBEAN PRODUCTION PAGE 5
duction systems need to be made. Among the
most effective changes identified to date are the
introduction of conservation tillage, the use of
cover crops, and longer crop rotations featuring
perennial forages. These are among the efforts
that will build soil health in the long term. For
more information on soil health and building
soils, request the ATTRA publication Sustainable
Soil Management. Also request Protecting Water
Quality on Organic Farms, which is useful for both
organic and non-organic producers.
Long-term rotations with legume sod
crops build the soil and provide a natural
reserve of nitrogen for subsequent crops
while reducing nutrient leaching. Soil is
especially resistant to erosion during the
sod phases of the rotation.
The production practices discussed below in-
corporate many of the basic principles of sustain-
able agriculture, common across many types of
farming. These include plant diversity (achieved
through crop rotation or intercropping); pest pre-
vention (including weeds, insects, and diseases)
through habitat manipulation; nutrient cycling;
soil-building; and management flexibility—to
name a few. There are any number of practices
and systems incorporating these principles from
which farmers can choose according to their in-
dividual situation. Three are offered below.
CONSERVATION TILLAGE
No-till has caught on in many states as a way
to control erosion and reduce production costs.
The primary economic benefits come from lower
labor and machinery overhead costs. Addition-
ally, costs of fuel and machinery maintenance are
lower. Yields under no-till typically hold steady
while the soil quality builds. Over time, water
infiltration and soil tilth increase. With no-till,
every field operation except planting and har-
vesting is done with a sprayer. Often the low-
est-cost system involves no-till with herbicide-
tolerant crops, though herbicide-free systems are
being researched.
Ridge-till is a good option in some situations.
This system could be considered intermediate in
sustainability in that it maintains some degree
of ground cover for much of the year but still
involves some cultivation. Herbicide use is gen-
erally reduced to a one-time band application on
the ridge, at or before planting.
COVER CROPPING
One of the most useful sustainable-ag prac-
tices employed in recent decades is the old but
undervalued practice of cover cropping. A cover
crop is a planting of (typically) grass and/or for-
age legumes on a field between production sea-
sons. Such plantings reduce erosion, build soil,
and, in the case of legumes, fix nitrogen for sub-
sequent crops. Cover crops are of exceptional
value on otherwise bare winter soils, which can
erode badly during rains and snow-melt runoff.
Another cover-cropping concept is the use of
“catch crops.” The term refers to a non-legumi-
nous cover crop, overseeded or planted shortly
after the main crop harvest. Its principal pur-
pose is to absorb soluble soil nutrients—espe-
cially nitrates—to prevent their leaching. Win-
ter annual grasses such as wheat, oats, rye, and
ryegrass are often used as catch crops. In sum-
mer, forage sorghums and buckwheat are some-
times employed. For more on cover crops re-
quest the ATTRA publication Overview of Cover
Crops and Green Manures.
COMBINATION SYSTEMS
Among the most promising systems to date
are those that combine conservation tillage with
cover crops. Dick and Sharon Thompson, who
farm 300 acres near Boone, Iowa, built a herbi-
cide-free weed-management system around
ridge-till technology for corn and soybeans.
Grain fields are overseeded or drilled in fall with
combinations of hairy vetch, oats, and grain rye
as a winter cover crop. The vetch provides ni-
trogen, while the grasses provide weed suppres-
sion and erosion protection. The cover crop is
not tilled in prior to planting. Instead, the ridge-
till planter skims off the top of the ridge enough
to create a clean seeding strip. Subsequent passes
with the ridge-till cultivator eliminate any cover
crop in the inter-row area and help to re-shape
the ridges. The Thompsons estimate savings of
$45 to $48 per acre using their methods.
//SUSTAINABLE CORN AND SOYBEAN PRODUCTIONPAGE 6
Walking the Journey: Sustainable
Agriculture that Works. 1992.
A 20-minute video about Dick and Sharon
Thompson’s ridge-till farming system.
Available for $39 from
Instructional Technology Center
121 Pearson Hall
Iowa State University
Ames, IA 50011
515-294-1540.
Don and Deloris Easdale of Hurdland, Mis-
souri, reduced their annual herbicide costs from
$10,000 to less than $1,000 in three years on their
300-plus acres of grain crops (11). They use hairy
vetch, winter rye, or Austrian winter peas in com-
bination with their ridge-till system. They flail-
chop hairy vetch or winter peas ahead of the
ridge-till planter and plant directly into the re-
maining cover-crop residue. This practice elimi-
nated using a burndown herbicide. The legumes
replace much of the nitrogen needed for the corn
or milo crop. Some liquid starter and liquid ni-
trogen is placed below the seed at planting. They
more than recover the seed costs of their cover
crops in savings on fertilizer and herbicide.
Other Useful ATTRA Publications:
• Sustainable Soil Management
• Principles of Sustainable Weed
Management
• Intercropping Principles and
Production Practices
• Overview of Organic Crop
Production
• Organic Field Corn Production
• Organic Soybean Production
• Alternative Agronomic Crops
• Conservation Tillage
• Pursuing Conservation Tillage for
Organic Crop Production
• Protecting Water Quality on Organic
Farms
• Moving Beyond Conventional Cash
Cropping
PPPPPerererererennialennialennialennialennial
AAAAAgggggrrrrriculturiculturiculturiculturicultureeeee
Perennial crops (sod, trees, perennial grain
crops) are inherently far more sustainable than
annual crops. The main reason is that they do
not require tillage to establish each year, hence
soil erosion is reduced. Perennial forage crops
like alfalfa, white clover, bromegrass, and fescue
absorb and recycle nitrates much more effectively
than row crops. Research in Minnesota has dem-
onstrated that corn and soybean rotations have
leached-nitrate losses 35 times as great as fields
in alfalfa or alfalfa-grass mixtures (12).
Agroforestry is a system that integrates pe-
rennial trees with annual crops such as corn and
beans or with perennial forages. Trees are inte-
grated with crops to increase economic stability
through diversification. Some of the more com-
mon approaches include alley cropping and
silvopasture. Alleycropping entails planting row
crops between rows of high-value wood or nut
trees during their establishment phase.
Silvopasture involves grazing livestock on for-
age growing under a widely-spaced tree stand.
The tree stand is thinned to allow enough sun-
light to reach the forages growing below. For
more information call ATTRA to request our
Agroforestry Overview publication.
//SUSTAINABLE CORN AND SOYBEAN PRODUCTION PAGE 7
There are many alternatives to corn and soy-
bean cropping that involve creating a base of pe-
rennial forage. Once the cropland has been con-
verted to perennial sod, the problems of erosion
and nutrient loss are minimized, making the
whole system much more environmentally sus-
tainable. Among the options are grazing systems
for beef, poultry, sheep, and hogs. Many other
grazing ungulates—such as llamas and alpacas—
can also be raised and marketed through a vari-
ety of channels. ATTRA has much more infor-
mation on forage-based systems available on re-
quest.
RRRRRefefefefeferererererencesencesencesencesences
1) Randall, Gyles. 2001. Intensive corn-
soybean agriculture not sustainable, U of
M scientist says. Sustainable Agriculture.
University of Minnesota Extension Ser-
vice, College of Agricultural, Food, and
Environmental Sciences. Vol. 9, No. 10. 2
p.
2) U.S. Department of Agriculture. 1998. A
Time to Act. USDA National Commission
on Small Farms, Washington, D.C. 121 p.
3) Goering, Peter, Helena Norberg-Hodge,
and John Page. 1993. From The Ground
Up. Rethinking Industrial Agriculture.
International Society for Ecology and
Culture. Berkeley, CA. 120 p.
4) U.S. Department of Agriculture. No date.
Trends in U.S. Agriculture. National
Agricultural Statistics Service. Available
on the web at <http://www.usda.gov/
nass/pubs/trends/index.htm>.
5) Baquet, Alan, Ruth Hambleton, and Doug
Jose. 1997. Introduction to Risk Manage-
ment. USDA Risk Management Agency.
19 p.
6) Pimentel, D., et al. 1995. Environmental
and economic costs of soil erosion and
conservation benefits. Science. Vol. 267,
No. 24. p. 1117–1122.
7) Schertz, D.L. 1985. Field evaluation of
the effect of soil erosion on crop produc-
tivity. p. 9–17. In: Erosion and Soil
Productivity. Proceedings of the National
Symposium on Erosion and Soil Produc-
tivity, December 10-11, 1984. American
Society of Agricultural Engineers, New
Orleans, LA. ASAE Publication 8-85.
8) Troeh, F.R., J.A. Hobbs, and R.L.
Donahue. 1991. Soil and Water Conserva-
tion. Prentice Hall, Englewood Cliffs, NJ.
530 p.
9) Stout, Cherry B., and John Pocock. 2000.
Hypoxia headaches. Prairie Farmer.
January. p. 42, 46, 48.
10) McIsaac, G.F., and R.A. Cooke. 2000.
Evaluation of Water Quality from Alter-
native Cropping Systems Using a Mul-
tiple-Paired Design. University of Illinois
at Urbana-Champaign, College of Agri-
cultural, Consumer, & Environmental
Sciences, Department of Natural Re-
sources and Environmental Sciences,
Department of Agricultural Engineering.
Available on the web at <http://
www.aces.uiuc.edu/~asap/research/
stew_farm/home.html>.
11) Easdale, Deloris. 1996. Controlling weeds
and maintaining soil fertility with cover
crops. NCTD. National Conservation
Tillage Digest. February. Vol. 3, No. 2. p.
28–30.
12) Randall, Gyles, et al. 1997. Nitrate losses
through subsurface tile drainage in
conservation reserve program, alfalfa, and
row crop systems. Journal of Environ-
mental Quality. Vol. 26. p. 1240–1247.
By Preston Sullivan
NCAT Agriculture Specialist
Edited by Richard Earles and
Paul Williams
Formatted by Gail Hardy
February 2003
//SUSTAINABLE CORN AND SOYBEAN PRODUCTIONPAGE 8
The electronic version of Sustainable Corn and
Soybean Production is located at:
HTML
http://www.attra.ncat.org/attra-pub/cornbean.html
PDF
http://www.attra.ncat.org/attra-pub/PDF/
cornbean.pdf
IP100/5

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Sustainable Corn and Soybean Production

  • 1. ATTRA is the national sustainable agriculture information service, operated by the National Center for Appropriate Technology through a grant from the Rural Business-Cooperative Service, U.S. Department of Agriculture. These organizations do not recommend or endorse products, companies, or individuals. NCAT has offices in Fayetteville, Arkansas (P.O. Box 3657, Fayetteville, AR 72702), Butte, Montana, and Davis, California. By Preston Sullivan NCAT Agriculture Specialist February 2003 SUSTAINABLE CORN AND SOYBEAN PRODUCTION AGRONOMY PRODUCTION GUIDE Abstract: Sustainable agriculture renews the environmental, social, and financial resources on which farming depends. This publication discusses the relationship of corn and soybeans to overall farm sustainability and suggests ways to improve the sustainability of corn and soybean production. Two farmers are featured who have found ways to grow corn and soybeans more sustainably. Also discussed are diversification options that are inherently more sustainable than annual row crops. IntrIntrIntrIntrIntroduction: Isoduction: Isoduction: Isoduction: Isoduction: Is gggggrrrrrooooowing corwing corwing corwing corwing cornnnnn and soand soand soand soand soybeansybeansybeansybeansybeans sussussussussustttttainable?ainable?ainable?ainable?ainable? For agriculture to be truly sustainable it must do three things at the same time: • Enhance the environment • Support the farm family at an accept- able economic level • Benefit the local community Gyles Randall, a soil scientist at the University of Min- nesota, states that corn and soybean production in his area does not appear to be sustainable in any of these aspects. The bottom line, Randall says, is that “we will need substantial changes in federal farm policy, cropping systems and usage of crops produced on the farm to sustain a healthy environment and rural community” (1). Let’s take a look at each of the three basic principles of sustainability as they relate to corn and soybean production and look for opportunities for progress. ©www.ClipArt.com2002 Table of Contents Introduction: Is growing corn and soybeans sustainable? ........................................................ 1 Breaking Out of the Conventional Paradigm.............................................................................. 3 Perennial Agriculture .................................................................................................................. 6 References ................................................................................................................................. 7
  • 2. //SUSTAINABLE CORN AND SOYBEAN PRODUCTIONPAGE 2 ENVIRONMENTAL SUSTAINABILITY To be environmentally sustainable, corn and soybean farms must protect soil and water. The two most common pollutants from corn and soy- bean production are soil sediments and nitrates. The main source of soil entering waterways is bare ground created by tillage. Poor soil health, excessive fertilizer use, and inappropriate tim- ing of fertilizer application cause nutrient runoff and leaching. Additionally, tile drainage hastens the movement of nutrients from fields to water- ways. Sustainable agriculture practices keep soil in the fields and prevent its movement into wa- terways. I will discuss these issues in more de- tail below. ECONOMIC SUSTAINABILITY To be economically sustainable, corn and soy- bean farms must generate a reliable profit mar- gin every season. Given current economics, com- modity producers have little control over the price they receive for their products. The farm- ers become, in essence, “price takers,” in that they take what they can get for their crop. With com- modity prices flat or in decline, and cost of pro- duction going up, it is easy to see why so many farms are going out of business. According to a 1998 report of the USDA Com- mission on Small Farms (2): “As farmers focused on producing undifferentiated raw commodities, food system profit and opportunities were shifted to the companies that process, package and market food.” The result: since 1980, farm- ers’ share of consumer spending has dropped 13 percent, while other food-system sectors are en- joying record profits. As more contract arrangements develop be- tween agribusiness and farmers, the farmer in- creasingly turns more decisions over to others and plays the role of indentured servant. Unless prices rise dramatically, corn and soybean pro- ducers will need to find ways to differentiate their products in order to tap markets that pay a premium. SOCIAL SUSTAINABILITY Sustainable rural communities require a vig- orous local economy based on successful, in- come-generating farms. Unfortunately, farmers dependent on corn and soybeans are losing their farms in great numbers and moving elsewhere to find jobs. Overall, the U.S. lost 219,500 farms between 1981 and 1986, as those fields were merged into larger operations (3). Figure 1 shows the decline in farm numbers from 1900 to 1997 (4). The perennial lack of profitability in com- modity-crop agriculture is evident in the ratio of prices paid for inputs to prices received for com- modities sold. Figure 2 shows declining ratios of sales prices to input prices (4). The net effect is lower profit margins for producers. With fewer people to support the local economy and pro- vide a tax base, businesses, churches, and social organizations close their doors. Also, schools and hospitals consolidate in larger towns and are less able to serve rural people. All of these trends affect the quality of life for those who remain on the land. FFFFFigurigurigurigurigure 1e 1e 1e 1e 1. N. N. N. N. Number of fumber of fumber of fumber of fumber of farararararms durms durms durms durms duringinginginging ttttthe 20the 20the 20the 20the 20th Centurh Centurh Centurh Centurh Centuryyyyy Source: National Agricultural Statistics Service, USDA. Source: National Agricultural Statistics Service, USDA. Figure 2.Figure 2.Figure 2.Figure 2.Figure 2.
  • 3. //SUSTAINABLE CORN AND SOYBEAN PRODUCTION PAGE 3 BrBrBrBrBreaking Out of teaking Out of teaking Out of teaking Out of teaking Out of thehehehehe ConConConConConvvvvventionalentionalentionalentionalentional PPPPParararararadigmadigmadigmadigmadigm ECONOMIC OPPORTUNITIES Economic sustainability increasingly de- pends on selecting profitable enterprises, sound financial planning, proactive marketing, and good management. The bottom line is that the farmer needs good financial planning tools and the willingness to follow a financial management plan. When the plan reveals that the economic risks of the current farm enterprises are high, it is probably time to look at alternatives. All the good financial planning in the world cannot help you if you are faced with prices out of your con- trol and changing government policies that may impact your income or costs. The comprehensive financial planning pro- cess used in Holistic Management™ begins by planning income, then allocating a planned profit as the first expense item. The remaining income is allocated to cover production costs. This ap- proach requires that costs never rise to the level of anticipated income—thus preserving a profit. This potent financial planning process empow- ers people to make decisions that are simulta- neously good for the environment, the local com- munity, and the bottom line. The holistic finan- cial plan provides a roadmap to help people navi- gate through their financial year, assured that the profit will be there at year’s end. Learn more about this process by requesting the ATTRA pub- lication entitled Holistic Management. If none of this sounds appealing, consider hir- ing a marketing consultant based on his or her track record of positive results. Ask bankers, neighbors, and the Extension Service for recom- mendations. Study and use the futures market to ensure adequate future income (5). Look at buying options as an insurance policy. At the very least, project your crop income based on the futures price, and plan expenses so that a profit is expected. Throughout the season, stay on track toward that profit by monitoring spending. The key to economic survival may lie in ex- ploring other income opportunities. These in- clude contract growing of seed corn, specialty corn, food-grade soybeans, or popcorn. These options are not for everyone; only a certain num- ber of acres of these crops can be grown because of their limited markets. Alternative row crops may be a viable option to lengthen a corn or soy- bean rotation; learn more about them from the ATTRA publication Alternative Agronomic Crops. Certified organic production is another op- tion. “Organic” not only means new market op- portunities but practices that are generally more ecologically sustainable. However, the mainte- nance of bare ground through tillage and culti- vation typical of organic corn and soybean pro- duction is not sustainable. For more informa- tion on organic production and certification, see the ATTRA publications Overview of Organic Crop Production, Organic Farm Certification and The Na- tional Organic Program, Organic Field Corn Produc- tion, and Organic Soybean Production. For more information on alternatives to tillage, see ATTRA’s Conservation Tillage and Pursuing Con- servation Tillage for Organic Crop Production. The introduction of genetically altered crop varieties has been greeted with both hope and caution by farmers. It is wise to stay current on market trends in genetically modified crops. Market uncertainty surrounds crops like Bt corn and Roundup-Ready™ soybeans. Though ge- netically modified crops are being grown on a large percentage of U.S. acres, there still remains significant resistance to buying them in key ex- port markets, especially Europe and Japan. Farmers who choose to plant these crops should be aware of this market uncertainty. Read more about GMO crops in the ATTRA publication Ge- netic Engineering of Crop Plants. ©www.ClipArt.com2002
  • 4. //SUSTAINABLE CORN AND SOYBEAN PRODUCTIONPAGE 4 Producers should also be aware that some buyers, including major grain traders like Archer Daniels Midland (ADM), have offered farmers price premiums for non-GMO crops, providing a market niche for standard varieties. Whether the non-GMO market continues to offer a pre- mium, and whether it grows or shrinks over time, remains to be seen. SUSTAINABLE MANAGEMENT ALTERNATIVES One way to increase the profitability of corn and soybean production is to reduce input costs and build drought-hardiness through sustainable management practices. The connection might not be obvious at first but will become so with the understanding that one of the greatest threats to agricultural sustainability is soil erosion and reduction in soil quality. Erosion is initiated by raindrop impact on bare soil. Any management $17/acre/year to pump irrigation water to com- pensate for lost soil water-holding capacity (8). The total cost of soil and water lost annually from U.S. cropland amounts to an on-site productiv- ity loss of approximately $27-billion each year (6). These costs do not include the additional losses to society as a whole from reduced air quality, pollution of surface waters, and dredg- ing of streams and drainage ditches. Erosion is not the sole source of nutrient loss from non-sustainable cropping. There is also sig- nificant loss to leaching. Nitrates, in particular, pose pollution problems by leaching into ground- water or moving through tile drains into ditches and surface waters. Dr. Otto Doering of Purdue University estimates that widespread implemen- tation of two best management practices (BMPs)—cessation of fall fertilization and re-es- tablishment of riparian wetlands along water- ways—could reduce nitrogen runoff by 20% (9). Runoff from fields farmed organically typically carries less nitrate; in an Illinois study, researchers showed that nitrate levels in organic corn fields were half those found in conventionally farmed fields (10). The ex- ception to this came shortly after a legume green-ma- nure crop had been incor- porated in the organic fields in preparation for corn planting; at that time, nitrate levels were the same in organic as in conventional. However, for farmers to effectively plug nu- trient leaks caused by erosion and leaching, more than BMPs are required. Serious changes in pro- practice that protects the soil from raindrop im- pact will decrease erosion and increase water entry into the soil. Mulches, cover crops, and crop residues serve this purpose well. For more information see the ATTRA publication Drought Resistant Soil. The major costs to the farm associated with soil erosion come from the replacement of lost nutrients and reduced water-holding ability, ac- counting for 50 to 75% of productivity loss (6). Eroded soil typically contains about three times more nutrients than the soil left behind and is 1.5 to 5 times richer in organic matter (6). Table 1 shows the effect of slight, moderate, and se- vere erosion on organic matter, soil phosphorus level, and plant-available water on a silt loam soil in Indiana (7). When erosion by water and wind occurs at a rate of 7.6 tons/acre/year it costs $40 per year to replace the lost nutrients as fertilizer and around Cover crops, Shinbone Valley, TN (photo printed with permission) Erosion Organic Plant-available level matter Phosphorus water % lbs./acre % Slight 3.0 62 7.4 Moderate 2.5 61 6.2 Severe 1.9 40 3.6 TTTTTable 1able 1able 1able 1able 1. Ef. Ef. Ef. Ef. Effffffect of erect of erect of erect of erect of erosion on orosion on orosion on orosion on orosion on orggggganic mattanic mattanic mattanic mattanic mattererererer,,,,, phosphorphosphorphosphorphosphorphosphorus, and plant-aus, and plant-aus, and plant-aus, and plant-aus, and plant-avvvvvailable wailable wailable wailable wailable watatatatater (7).er (7).er (7).er (7).er (7).
  • 5. //SUSTAINABLE CORN AND SOYBEAN PRODUCTION PAGE 5 duction systems need to be made. Among the most effective changes identified to date are the introduction of conservation tillage, the use of cover crops, and longer crop rotations featuring perennial forages. These are among the efforts that will build soil health in the long term. For more information on soil health and building soils, request the ATTRA publication Sustainable Soil Management. Also request Protecting Water Quality on Organic Farms, which is useful for both organic and non-organic producers. Long-term rotations with legume sod crops build the soil and provide a natural reserve of nitrogen for subsequent crops while reducing nutrient leaching. Soil is especially resistant to erosion during the sod phases of the rotation. The production practices discussed below in- corporate many of the basic principles of sustain- able agriculture, common across many types of farming. These include plant diversity (achieved through crop rotation or intercropping); pest pre- vention (including weeds, insects, and diseases) through habitat manipulation; nutrient cycling; soil-building; and management flexibility—to name a few. There are any number of practices and systems incorporating these principles from which farmers can choose according to their in- dividual situation. Three are offered below. CONSERVATION TILLAGE No-till has caught on in many states as a way to control erosion and reduce production costs. The primary economic benefits come from lower labor and machinery overhead costs. Addition- ally, costs of fuel and machinery maintenance are lower. Yields under no-till typically hold steady while the soil quality builds. Over time, water infiltration and soil tilth increase. With no-till, every field operation except planting and har- vesting is done with a sprayer. Often the low- est-cost system involves no-till with herbicide- tolerant crops, though herbicide-free systems are being researched. Ridge-till is a good option in some situations. This system could be considered intermediate in sustainability in that it maintains some degree of ground cover for much of the year but still involves some cultivation. Herbicide use is gen- erally reduced to a one-time band application on the ridge, at or before planting. COVER CROPPING One of the most useful sustainable-ag prac- tices employed in recent decades is the old but undervalued practice of cover cropping. A cover crop is a planting of (typically) grass and/or for- age legumes on a field between production sea- sons. Such plantings reduce erosion, build soil, and, in the case of legumes, fix nitrogen for sub- sequent crops. Cover crops are of exceptional value on otherwise bare winter soils, which can erode badly during rains and snow-melt runoff. Another cover-cropping concept is the use of “catch crops.” The term refers to a non-legumi- nous cover crop, overseeded or planted shortly after the main crop harvest. Its principal pur- pose is to absorb soluble soil nutrients—espe- cially nitrates—to prevent their leaching. Win- ter annual grasses such as wheat, oats, rye, and ryegrass are often used as catch crops. In sum- mer, forage sorghums and buckwheat are some- times employed. For more on cover crops re- quest the ATTRA publication Overview of Cover Crops and Green Manures. COMBINATION SYSTEMS Among the most promising systems to date are those that combine conservation tillage with cover crops. Dick and Sharon Thompson, who farm 300 acres near Boone, Iowa, built a herbi- cide-free weed-management system around ridge-till technology for corn and soybeans. Grain fields are overseeded or drilled in fall with combinations of hairy vetch, oats, and grain rye as a winter cover crop. The vetch provides ni- trogen, while the grasses provide weed suppres- sion and erosion protection. The cover crop is not tilled in prior to planting. Instead, the ridge- till planter skims off the top of the ridge enough to create a clean seeding strip. Subsequent passes with the ridge-till cultivator eliminate any cover crop in the inter-row area and help to re-shape the ridges. The Thompsons estimate savings of $45 to $48 per acre using their methods.
  • 6. //SUSTAINABLE CORN AND SOYBEAN PRODUCTIONPAGE 6 Walking the Journey: Sustainable Agriculture that Works. 1992. A 20-minute video about Dick and Sharon Thompson’s ridge-till farming system. Available for $39 from Instructional Technology Center 121 Pearson Hall Iowa State University Ames, IA 50011 515-294-1540. Don and Deloris Easdale of Hurdland, Mis- souri, reduced their annual herbicide costs from $10,000 to less than $1,000 in three years on their 300-plus acres of grain crops (11). They use hairy vetch, winter rye, or Austrian winter peas in com- bination with their ridge-till system. They flail- chop hairy vetch or winter peas ahead of the ridge-till planter and plant directly into the re- maining cover-crop residue. This practice elimi- nated using a burndown herbicide. The legumes replace much of the nitrogen needed for the corn or milo crop. Some liquid starter and liquid ni- trogen is placed below the seed at planting. They more than recover the seed costs of their cover crops in savings on fertilizer and herbicide. Other Useful ATTRA Publications: • Sustainable Soil Management • Principles of Sustainable Weed Management • Intercropping Principles and Production Practices • Overview of Organic Crop Production • Organic Field Corn Production • Organic Soybean Production • Alternative Agronomic Crops • Conservation Tillage • Pursuing Conservation Tillage for Organic Crop Production • Protecting Water Quality on Organic Farms • Moving Beyond Conventional Cash Cropping PPPPPerererererennialennialennialennialennial AAAAAgggggrrrrriculturiculturiculturiculturicultureeeee Perennial crops (sod, trees, perennial grain crops) are inherently far more sustainable than annual crops. The main reason is that they do not require tillage to establish each year, hence soil erosion is reduced. Perennial forage crops like alfalfa, white clover, bromegrass, and fescue absorb and recycle nitrates much more effectively than row crops. Research in Minnesota has dem- onstrated that corn and soybean rotations have leached-nitrate losses 35 times as great as fields in alfalfa or alfalfa-grass mixtures (12). Agroforestry is a system that integrates pe- rennial trees with annual crops such as corn and beans or with perennial forages. Trees are inte- grated with crops to increase economic stability through diversification. Some of the more com- mon approaches include alley cropping and silvopasture. Alleycropping entails planting row crops between rows of high-value wood or nut trees during their establishment phase. Silvopasture involves grazing livestock on for- age growing under a widely-spaced tree stand. The tree stand is thinned to allow enough sun- light to reach the forages growing below. For more information call ATTRA to request our Agroforestry Overview publication.
  • 7. //SUSTAINABLE CORN AND SOYBEAN PRODUCTION PAGE 7 There are many alternatives to corn and soy- bean cropping that involve creating a base of pe- rennial forage. Once the cropland has been con- verted to perennial sod, the problems of erosion and nutrient loss are minimized, making the whole system much more environmentally sus- tainable. Among the options are grazing systems for beef, poultry, sheep, and hogs. Many other grazing ungulates—such as llamas and alpacas— can also be raised and marketed through a vari- ety of channels. ATTRA has much more infor- mation on forage-based systems available on re- quest. RRRRRefefefefeferererererencesencesencesencesences 1) Randall, Gyles. 2001. Intensive corn- soybean agriculture not sustainable, U of M scientist says. Sustainable Agriculture. University of Minnesota Extension Ser- vice, College of Agricultural, Food, and Environmental Sciences. Vol. 9, No. 10. 2 p. 2) U.S. Department of Agriculture. 1998. A Time to Act. USDA National Commission on Small Farms, Washington, D.C. 121 p. 3) Goering, Peter, Helena Norberg-Hodge, and John Page. 1993. From The Ground Up. Rethinking Industrial Agriculture. International Society for Ecology and Culture. Berkeley, CA. 120 p. 4) U.S. Department of Agriculture. No date. Trends in U.S. Agriculture. National Agricultural Statistics Service. Available on the web at <http://www.usda.gov/ nass/pubs/trends/index.htm>. 5) Baquet, Alan, Ruth Hambleton, and Doug Jose. 1997. Introduction to Risk Manage- ment. USDA Risk Management Agency. 19 p. 6) Pimentel, D., et al. 1995. Environmental and economic costs of soil erosion and conservation benefits. Science. Vol. 267, No. 24. p. 1117–1122. 7) Schertz, D.L. 1985. Field evaluation of the effect of soil erosion on crop produc- tivity. p. 9–17. In: Erosion and Soil Productivity. Proceedings of the National Symposium on Erosion and Soil Produc- tivity, December 10-11, 1984. American Society of Agricultural Engineers, New Orleans, LA. ASAE Publication 8-85. 8) Troeh, F.R., J.A. Hobbs, and R.L. Donahue. 1991. Soil and Water Conserva- tion. Prentice Hall, Englewood Cliffs, NJ. 530 p. 9) Stout, Cherry B., and John Pocock. 2000. Hypoxia headaches. Prairie Farmer. January. p. 42, 46, 48. 10) McIsaac, G.F., and R.A. Cooke. 2000. Evaluation of Water Quality from Alter- native Cropping Systems Using a Mul- tiple-Paired Design. University of Illinois at Urbana-Champaign, College of Agri- cultural, Consumer, & Environmental Sciences, Department of Natural Re- sources and Environmental Sciences, Department of Agricultural Engineering. Available on the web at <http:// www.aces.uiuc.edu/~asap/research/ stew_farm/home.html>. 11) Easdale, Deloris. 1996. Controlling weeds and maintaining soil fertility with cover crops. NCTD. National Conservation Tillage Digest. February. Vol. 3, No. 2. p. 28–30. 12) Randall, Gyles, et al. 1997. Nitrate losses through subsurface tile drainage in conservation reserve program, alfalfa, and row crop systems. Journal of Environ- mental Quality. Vol. 26. p. 1240–1247. By Preston Sullivan NCAT Agriculture Specialist Edited by Richard Earles and Paul Williams Formatted by Gail Hardy February 2003
  • 8. //SUSTAINABLE CORN AND SOYBEAN PRODUCTIONPAGE 8 The electronic version of Sustainable Corn and Soybean Production is located at: HTML http://www.attra.ncat.org/attra-pub/cornbean.html PDF http://www.attra.ncat.org/attra-pub/PDF/ cornbean.pdf IP100/5