Things you should know about crop production in Alabama Bob Goodman, Extension Economist
Crops in Alabama Cotton 3.8 M ac Peanuts ½ M ac Corn 3.8 M ac Soybeans 2.1 M ac Wheat.725 M ac Sweet Potatoes Sweet Corn Tomatoes Watermelons Potatoes
Crops in Alabama Cotton lb/ac to 766 lb/ac Peanuts lb/ac to 2675 lb/ac Corn- 55 bu/ac to 107 bu/ac Soybeans - 16 bu/ac to 35 bu/ac Wheat - 34 bu/ac to 54 bu/ac Yield Variability
Recent Cropping History Cotton: stable at 5-600,000 acres. Soybeans: losing gulf acreage, stable at around ,000 acres in NW. Corn: susceptible to drought and heat, usually plant about 200,000 acres Wheat: Planted acres increased for no-till, harvested acres decreasing Peanuts: Loss of program is moving peanuts into new areas of state. Acreage constant at ,000.
Cropping History Many areas in Alabama are marginal crop production areas: “Poor” soils? – Piedmont, black-belt, coastal plains “Never more than a week away from a drought” – Summer rainfall pattern Lack of irrigation potential Small, irregular fields Rolling topography History of under-capitalization, low production
Cropping History Some areas are prime crop production areas: same areas TN valley, Wiregrass, Coastal Plain Would continue to produce without government commodity payments Greater capitalization, better management, more production inputs, increased use of new technology, larger farms
Recent Cotton Developments Boll Weevil Eradication – early ’90’s Budworm resistance and Bt Roundup-Ready cotton Crop Rotation with corn or peanuts Export trade and the domestic textile industry
Cotton About 80% transgenic Roundup-ready Bt Stacked About 80% Conservation Tillage Cover Crops Stubble Cropping Spindle picked Most cotton in Alabama does not receive an over-the-top insecticide treatment.
Peanuts Now a commodity program crop Loan price is $355 per ton, old price support was about $600 per ton Twin row, No-till adoption Peanut acreage shifting
Soybeans 2 Million acres in 1979 down to 200,000 Roundup-Ready and conservation tillage 1994 Plant Variety Protection Act Emergence of private patented varieties
Corn Emerging as important rotational crop for cotton in North Alabama Amenable to new technology: Bt Twin-Row planting High plant population Precision Ag
Wheat Planted for grain, forage, cover Weed control, disease control is an issue if planted for grain
VariableFixedTotal Expenses Cost Upland cotton Peanuts Corn for grain Soybeans Wheat for grain Crop Expense Summary
TotalExpectedTotal Cost Gross ReturnProfit Upland cotton Peanuts Corn for grain Soybeans Wheat for grain Crop Costs and Returns
Crop Insurance MPCI – Multi Peril Crop Insurance Based on 50-75% APH x % RMA crop price CRC – provides revenue protection based on price and yield expectations by paying for losses below the guarantee at the higher of an early-season price or the harvest price.
Crop insurance typically insures about 50% of a farmers normal expected revenue. Government commodity disaster payments are also based on APH, and usually provide for limited coverage of losses exceeding 75% of normal yield. Crop Insurance
Commodity Programs Fixed Payments Countercyclical Payments Loan Deficiency Payments Emergency Program Payments
Commodity Programs Fixed Payment Countercyclical Payment Loan Deficiency Payment Target Price Market Price Loan Rate Fixed and countercyclical payments are “decoupled” from production and are made on 85% of a farm’s “base” crop acreage. Peanuts are a commodity crop in this program.
Promote Market Stability Assist Conservation of Natural Resources Insure Self-Sufficiency Preserve the rural economy and community Help all agricultural sectors Allow alternative uses for commodities Have a history of success Are relatively inexpensive Commodity Programs
Issues for the future Role of Public Sector and NGO’s in technology development and ownership of genetic material. The importance of our agricultural identity and heritage in the face of an increasingly urban society. Adoption of new technology Genetics Precision agriculture