Natural Agriculture

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Natural Agriculture … How Viable/Still Viable? Craig Chase, Field Specialist Farm & Ag Business Management

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Session Agenda Economics of natural agribusiness. Neely-Kinyon long haul revolution examine. Natural spending plans. 2008 upgrades. Financial matters of transitioning.

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Neely-Kinyon Organic Study The Neely-Kinyon Research Farm is situated in SW Iowa (Greenfield) Focus on looking at Three Production Systems Conventional corn-soybean pivot Organic corn-soybean-oat/horse feed Organic corn-soybean-oat/hay Organic trimming frameworks were built up in 1998; ensured natural in 2000.

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Yields, by Crop and Rotation, 2000-2004

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Estimated Fieldwork, by Rotation, 2000-2004

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Production Costs by Crop & Rotation, 2000-2004

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Returns to Land & Management, by Crop and Rotation, 2000-2004 Iowa normal costs utilized every year; least cost was the credit rate.

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Yes, yet… That's an exploration cultivate and doesn't mirror my ranch. Other than the ordinary C-Sb isn't generally customary. Reaction: Developed the Iowa Organic Budgets (Fm-1876) to speak to state expenses and returns. Changed Iowa Crop Production Budgets (Fm-1712) to use as an examination.

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Yields by Crop and Rotation

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Estimated Rotation Fieldwork

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Production Costs by Crop & Rotation

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Returns to Land & Management Prices: $2.15,$6.00; $4.50, $13.60, $2.30, $90

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Yes, yet … With the ethanol blast and higher corn and soybean costs, natural generation no longer has a financial favorable position to routine agribusiness. Other than customary corn has higher yields than the Extension production appears.

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Yields by Crop and Rotation

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Production Costs by Crop & Rotation

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Returns to Land & Management Prices: $5.00, $12.00; $10.00, $23.40, $5.25, $190

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Yes, however… Government program installments are excluded. Reply: At current higher costs, there are no administration program installments aside from direct installments and those are the same paying little heed to what is developed.

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Bottom Line when all is said in done , very much overseen natural turns are more beneficial than all around oversaw ordinary corn-soybean revolutions… with or without premiums around the state with or without government program installments. Given high corn costs, natural frameworks that lose all their value premiums will be less gainful than the routine framework.

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Bottom Line However, as manure, pesticides, seed, and so on increment in cost, natural frameworks might be financially aggressive even without cost premiums. Natural creation is the great hazard/compensate circumstance. You hazard productivity amid the move to get much higher returns once the framework is up and running.

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Questions on Profitability of Organic Production?

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Organic Agriculture … Making the move…

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Organic Transition Economics Step 1: build up a move creation arrange… Example – You acquired a 240-section of land ranch. It is as of now in a corn-soybean pivot. You need to move into organics. You choose to move field-by-field.

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Field Plan For straightforwardness, Assume you can isolate the 240 sections of land into 4, 60-section of land fields. Also, you will deliver ordinary and transitioning crops on a similar ranch.

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Field Plan

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Returns to Land & Management Prices: traditional - natural costs once ensured

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Questions… .. Any inquiries or remarks? Much obliged to You for This Opportunity! Craig A. Pursue Farm Management Field Specialist 720 7 th Avenue SW Tripoli, IA 50676 (319) 882-4275 cchase@iastate.edu

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