1. Corn Economics Corn Production School February 7, 2006 Mike Duffy
Director, Beginning Farmer Center

2. Outline Historical cost division
Cost data from Iowa Farm Business Association
Impact of higher energy prices
Returns
Future

8. Iowa Farm Business Association

20. Energy Cost Impacts

27. Government Programs

30. Average Government Payments, 1995-2004
Source: Environmental Working Group, 2002 Census of Agriculture

31. Capitalized Value of Government Payments as a Percentage of Land Value

32. Government Payments/NFI 2000 - 2004
Source:USDA/ERS

33. Revenue

41. Future
Level and type of government payments will be an issue in profitability without other offsets
Ethanol demand could have a significant impact especially over the next few years
Energy costs will be more of a factor in the years to come
Farmers will need to carefully evaluate technology traits and determine which ones are profitable for them

42. Future
More production and marketing based on attributes will provide a key for profitability
The market will continue to segment based on attributes not simply volume
For the foreseeable future Iowa will stay in corn production although there may be some geographical shifts

43. Thank you! For more information contact me or visit our web site;
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