Economic analysis of double cropping systems in central Indiana: Winter wheat, corn, sorghum, sweet sorghum and soybeans

Julia Isabel Navarro, Purdue University

Abstract

This study evaluates the profitability of various double cropping systems established at the Agronomy Center for Research and Education (ACRE) at Purdue University during the years of 2008 and 2009. The double cropping systems under review included winter wheat followed by different grain and silage varieties of corn, sorghum, sweet sorghum and soybean. Enterprise budgets were constructed to estimate annual net returns (ANR), direct and total cost of production, breakeven prices and direct and total costs per ton of dry matter (DM). The effect of yield variation is measured on ANR and breakeven prices. Mean, standard deviation (SD), and coefficient of variation (CV) of yields, ANR and, breakeven points were calculated for all cropping systems under review. Based on 2009 data, results showed three economically competitive ANR from double cropping systems: winter wheat harvested as green chop followed by soybean with $29.41/acre; winter wheat harvested for silage in combination with soybean resulting in $63.08/acre and; winter wheat harvested for silage followed by sweet sorghum silage with $79.04/acre. When yield data from 2008 and 2009 was considered, seven double cropping systems had positive average annual net returns. Winter wheat harvested as green chop (WWGC) followed by soybean results is the double cropping system with the lowest positive average ANR at $1.68/acre. It is also the double cropping systems with the highest variability according to the ANR coefficient of variation (27.6692). Winter wheat grain (WWG) followed by sweet sorghum silage resulted in average ANR of $17.46/acre with the second highest ANR CV at 4.7937. Winter wheat grain double cropped with sorghum silage has the highest average ANR with $243.60/acre, followed by winter wheat silage combined with sweet sorghum silage with an average ANR of $129.60/acre. These two double cropping systems are also associated with low ANR variation, based on their coefficients of variation of 0.6762 and 0.3930, respectively. Therefore, WWS followed by sweet sorghum silage is the system with the lowest variation and the second highest average ANR. Winter wheat silage followed by sorghum has an ANR CV of 0.6639; average ANR are the third highest with $129.60 for this system. These systems can potentially improve agricultural sustainability through enhanced soil cover during the winter and reduced soil erosion. Additionally, these cropping systems could provide flexibility and market diversity to crop producers, who could target livestock, grain, and silage production, and/or biomass production for the ethanol industry.

Degree

M.S.

Advisors

Snyder, Purdue University.

Subject Area

Agronomy|Agricultural economics

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