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Feedgrains like corn and grain sorghum are important row crops in South Texas. Grain sorghum in particular is one of the best adapted crops for the hot, dry growing conditions of South Texas. As such, planting grain sorghum is a form of risk management (e.g., hedging against dry weather). Corn and grain sorghum are important rotation crops with other cash crops like cotton and vegetables.
The profitability of corn in South Texas is greatly influenced by the hot, dry climate. Under situations of severe drought stress, a common occurrance in South Texas, corn products may accumulate high levels of aflatoxin. Aflatoxin is a toxic compound produced by fungi, and corn containing a high concentration of this toxin is unmarketable as a feedgrain. Producers must either destroy the crop or process it to remove the toxin, and both of these alternatives result in a loss of revenue for the producer.
Since a crop like sorghum typically returns thin profit margins at best, it is important to deliberately manage variable and fixed costs in feedgrain production. A basic approach to this involves keeping good records and creating useful financial statements to evaluate and manage the performance of your feedgrain enterprise.
The 2001 season corn and sorghum crops were completed with the June/July harvest season. The main production issues during the fall are land preparation for the Spring 2002 planting season, capital investment or disinvestment decisions, and ultimately the next season's planting choices. One example of an investment/disinvestment decision would be adopting a reduced tillage system for feedgrains. South Texas farmer will begin planting next year's corn and sorghum in late January or early February.
Q. How many acres of corn, sorghum, and other feed grains are produced in my county or region?
Q. How much does it cost to grow corn, sorghum, and other feed grains?
Q. Should I plant more or less corn or grain sorghum next year? (Link to a new article about planting decisions)
Q. What insurance products are available for corn or grain sorghum? (Link to new article about crop insurance)
Q. How much will it cost to convert my operation to reduced tillage? (link to new article)
Q. What
is the economic impact of having aflatoxin in my corn?
The Department of Soil and Crop Sciences at Texas A&M University has numerous publications on agronomic aspects of corn, sorghum, wheat and small grains production.
The Risk Management Curriculum Guide describes the impact of marketing strategies, price risk, production risk, financial risk, budgeting, and government policy on the financial performance of agricultural enterprises.
Use of Ammoniated Corn in Feed Rations at a Commercial Feedyard : An Industry Report