1. Popcorn An ancient snack that still pops!
The production, market and expected return
December 2008
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Overview-History
Popcorn is an ancient and proven treat.
Archaeologists who conducted excavations in the Bat Cave of West Central Mexico discovered popcorn that dated nearly 5600 years old.
In the tombs on the east coast of Peru, popcorn kernels 1000 years old were discovered and still able to pop due to their preservation.
Pottery popcorn poppers dating back to pre-Inca cultures in Peru.
Native American Indians were using popcorn for decorations and food prior to Christopher Columbus discovering America in 1492
Cortez, in 1519, found the Aztecs in Mexico wearing popcorn decorations and headdresses.
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Overview
Americans consume billion quarts of popcorn a year.
Approximately 70 percent is consumed at home due to use of the microwave. Most popcorn (90%) sold in the home is unpopped.
The major popcorn producing states include: Kentucky, Kansas Nebraska, Missouri, Iowa, Illinois, Indiana, Michigan and Ohio.
Popcorn sales reach their peak in the Fall season.
Popcorn tends to be a popular snack among all age groups.
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Popcorn anatomy
Popcorn is known as Zea mays everta. It is a type of maize, or corn. Popcorn is a grain and made up of three components: the germ, endosperm, and pericap (hull)
Nutritional values can be found at
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Market Opportunities
There are three markets for good quality popcorn
1) Processor-contracted acreage-The contracts generally specify a given number of acres of a particular hybrid popcorn for a fixed price. Usually per 100 lbs of delivered popcorn.
2) Open-Market Sales- A grower who sells on the open market exposes themselves to risk due to varying prices. The grower must be aware of current acreage, crop conditions, market demand, and carryover.
3) Local Sales- Requires a longer commitment to growing popcorn with a objective of becoming a processor on a small scale.
Alternative outlets- ground up popcorn for feed for livestock would minimize a loss crop.
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6. Production Characteristics
Planning
- Field preparation is similar to that of field corn.
- Corn will need to be planted in early April to mid- May.
- Row width should be inches. No advantage in shorter than 36 inches unless you are rotating soybeans which can be 30 inches apart. This allows use of the same harvesting equipment.
- A good crop rotation includes either: corn/soybean or corn/wheat/double cropped soybean (both of which are common in Kentucky.)
- Seeds are planted 2-3 inches deep with spacing of 6-8 inches apart. Since popcorn is wind-pollinated, it is more effective to plant several short rows instead of long rows.
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7. Production Characteristics
Soil types
- Although there is little data on the effects of soil type on popcorn production yield, experience of growers has shown any type of soil that can grow dent corn does well for popcorn. A pH of 6.0 is adequate for popcorn.
- Popcorn seed germinates slower and seedlings also grow slower than that of dent corn. This shows that medium to coarse textured soils should improve germination and establishment of the seedlings.
- Popcorn root systems are less extensive than dent corn therefore, soils rich in clay can reduce yield and increase lodging.
- Fertilizer levels should be similar to dent corn. The highest nitrogen level yielded threefold outputs. However, some use less nitrogen since the yield is less than that of dent corn.
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8. Production Characteristics
Harvest, Handling, and Storage
-All equipment must be cleaned prior to use to minimize mold and insect manifestations.
-Most harvesting today is by combine, even though this will lead to more kernel damage.
- Field moisture level should be 14-18% with optimal level of 16-17%. (>18% results in shelling losses, <14% kernels have impact damage).
- Combine settings must be adjusted for popcorn. Cylinder speed, conclave clearance, and other adjustments must be to reduce kernel damage.
- Popcorn can also be hand and ear harvesting (4 labor hrs per acre for production and harvest.)
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9. Production Characteristics
Harvest, Handling, and Storage
- The most important quality about popcorn is popcorn volume. The conditioning of the kernels is of utmost importance. The greatest popping volume is achieved when the kernels are dried to a moisture content of %. The optimal level is at 13.5%. The popcorn must be dried to at least 13.5% with special caution to not over dry the kernels. Over dried kernels(11%) can be rewetted but will never reach the highest potential popping volume.
- Processors may reject popcorn that does not meet some minimum popping volume.
- Good popcorn should provide at least 98% kernels with well under 2% “spinsters” or unpopped kernels.
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10. Production Characteristics
Harvest, Handling, and Storage
- Storage is very important to prevent moisture issues as well as rodent or insect infestations.
- Popcorn dried to 14.5% moisture can safely be stored over winter and early spring.
- For longer term storage, the kernels should be dried to %
- Aeration systems similar for dent corn can be used for popcorn.
- Keep the surrounding areas weed and trash free to minimize rodents/insects.
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Disease Management
Diseases of Corn – Minimized by crop rotation, resistant hybrids, tillage, and fungicides.
- Ear and Kernel Rots
- Anthracnose
- Gray Leaf Spot
- Northern Leaf Blight
-Rusts
- Seed Rot and Damping Off
- Common Smut
- Southern Leaf Blight
- Stalk Rot
- Stewart’s Wilt
- Top Dieback (Upper Stalk Rot)
- Virus Complex
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12. Insect Pests Management
Pest Management- Must only select the insect management tools that is necessary to combat the problem.
- Black Cutworm
-Corn Flea Beetle
- Corn Rootworms
-Armyworms
- European Corn Borer
- Southwestern Corn Borer
- Fall Armyworm
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13. Economics for Corn Production
A sample corn
budget from the University of Kentucky,
College of Agriculture,
Cooperative Extension
Service
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Revenue
Revenue sources
The University of Kentucky New Crop Opportunities Center shows 2006 costs for a grower who contracts his crop to be at $219 per acre. Assuming 3400 lbs per acre could be harvested would result in $340 per acre if it was sold at $10 per hundred pounds weight(cwt)
Returns to capital and management, labor, and land would be approximately $121 per acre.
Any non-usable kernel can be ground up and sold as feed for livestock.
A grower can expect to spend an additional $5-55 per year per acre for insecticides depending on insect annoyance.
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Revenue
Opportunity Cost
When a grower is considering the accounting profits and cash flows, a grower must take into consideration the economics profits as well.
Economic profits include the revenue that could be earned by not growing popcorn. Growers who own their own land can earn other revenue by growing something else with their land. Growers could also rent their land to other growers and not farm altogether.
These costs are real (even though cash may or may not exchange hands) and must be included in any decision process.
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Risk
Market Risk-Most popcorn in made under contract per hundred weight at a set price. In the open market, the price will always vary.
Production Risk- Popcorn suffers highly in extreme weather ( i.e. droughts)
Financial Risk- Popcorn should be used in a conjunction with other crops like soybeans and wheat so that the same equipment can be used to harvest the crops.
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Basic Summary
Market Opportunity- Kentucky is a great place to grow corn. However, production costs are high and the value per bushel has declined in recent years resulting in producers managing their crop more effectively to ensure greater profits.
Advantages of growing popcorn- Corn is behind only tobacco and soybeans as a cash crop. Corn is number one as a row crop in terms of acreage. Corn is grown in every county in Kentucky and ranks third in total crop value as well.
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Bibliography
Bitzer et al, A Comprehensive Guide to Corn Management in Kentucky, Retrieved November 2008,
The Center for Innovative Food Technology, Alternative Ag Ventures-Popcorn, Retrieved November
Popcorn Board, Retrieved November 2008,from
University of Kentucky- College of Agriculture- Cooperative Extension Service, 2007, Popcorn and Blue Corn, Retrieved November 2008,
White, Jane, Popcorn: The Incredible Exploding Crop , Retrieved November 12th, 2008,
Ziegler, K. E. , Ashman, P. B., White, G. M., & Wysong, D. S., National Corn Handbook, Retrieved November 12th, 2008,
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