Description: High amylose corn has amylose content greater than 50%. Three types produced commercially are Class V (50% amylose) and Class VII (70% amylose), and Class IX (90% amylose). It is grown exclusively for wet milling to produce a starch that crystallizes quickly. The starch from high amylose corn is used in textiles, gum candies, biodegradable packaging materials, and adhesives for manufacturing corrugated cardboard. There is potential for use in production of other biodegradable plastic products. High amylose corn yields 75-80% as much as normal hybrids. Test weights are also lower than normal hybrids – 50 pounds per bushel is not uncommon.
Trends in demand: About 50,000-60,000 acres of high amylose corn will be grown in 2003 almost exclusively in the areas of east central Illinois and central Indiana. On farm storage is required since grain needs to be identity preserved. Future demand will be steady with little growth. A processor in Indiana is the main user of high amylose corn, so demand is limited to their needs and location. This company also develops the hybrids to be used for high amylose corn production and owns 95% of the patents. Since the by-products are shipped to Europe, all high amylose corn is non-GMO. All production is grown under contract and priced on a per bushel basis. Current premiums are based on amylose content and range from 40% over the local elevator price for conventional corn while another company reported paying $1.00/bushel premium. Profitability of growing high amylose corn is dependent on proximity to the processor due to transportation costs.

RECOMMENDED PRODUCTION MANAGEMENT PRACTICES

Management practices that are required for successful amylose corn production are similar to those used to optimize performance of normal yellow dent corns. Growers should follow recommended agronomic practices that minimize stress and maximize yield potential. Grain identity must be preserved from planting through storage.

• Seed Selection. To ensure conformity, the contractor generally specifies hybrid number and furnishes the seed.
• Site Selection. Select fields with good drainage. Amylose corn plants do not like “wet feet.”
• Crop Rotation. A good corn-soybean rotation program is recommended to increase yield and control pests.
• Isolation. Isolation from non-amylose corn is necessary. Allow 8-10 border rows around field to eliminate cross-pollination. These border rows should be harvested separately and used as feed or sold as #2 corn.
• Seedbed Preparation. Avoid planting in fields with cloddy soils, heavy residue, and poor furrow closure conditions. Conventional and minimum till methods may provide for more even plant emergence than no-till practices.
• Plant Population. Decrease your plant population 10-15%, or from 28,000 to about 24,500 to 26,500.
• Planting Date. Wait until soil temperatures are 55 degrees and warming. The end of April or the first week of May is usually the best time to plant.
• Emergence. Fertilizer starter blends promote uniformity and overcome slow plant emergence trait of high amylose seed.
• Fertility. A good fertility program is required. Use a little less nitrogen than you would use for conventional corn but all of the potash and phosphate. Side dressing and the use of starter fertilizer are highly recommended.
• Insect and Disease Management. An effective pest control program is required. Corn borer and rootworm damage can add stress to genetically weak stalks. Gray Leaf Spot is a problem. Contractors often scout the fields and bear cost for control treatment of first generation corn borer and Gray Leaf Spot.

RECOMMENDED HARVEST AND POST-HARVEST MANAGEMENT PRACTICES

• Harvesting Amylose Corn: To avoid excessive mechanical damage to kernels, make sure the combine is properly adjusted. Use a rotary combine if possible. As with all food grade products, identity preservation (IP) is a must. Empty augers and make sure combine, truck beds, and wagons are clean and free of all foreign material. Storage bins should be swept clean prior to placing grain in them to reduce insect problems.
• Drying Strategies: Field drying to at least 25-26% moisture is recommended and allows the kernel to reach full maturity. Because stalks are weak, standability and ear droppage are problems. Harvest at 30% moisture is usually allowed to prevent loss but clean shelling is still required. Getting the crop out before stalks break is critical. Corn may be machine dried at low temperatures, but kernel temperature must not exceed 125 degrees during the entire drying process to maintain starch quality. Cool in a separate bin. Run a cooling cycle through grain once a month throughout the winter to lower grain temperature. Cover fan to minimize moisture accumulation in stored grain in the spring.

SAMPLE PARTIAL BUDGET ANALYSIS

• Seed and Costs:
Seed is provided by the contractor, no cost is passed on to the grower.

• Per Acre Variable Cost Comparison:

• Premium:
  Premiums range from 40% over local elevator price to $1.00/bushel for 2003, based on conversations with two grain processors.

• Increased Profit Potential Per Acre:
  • Regular Hybrid Corn:
    155 Bu/acre x $2.35 = $348.75
    $364.25 - $196.00 expenses = $168.25 per acre Regular Hybrid Corn
  • High Amylose Corn:
    116 Bu/acre x ($2.35 per Bu + $0.96 per Bu premium) = $383.96
    $383.96 - $139.00 expenses = $244.96 per acre High Amylose

  Added Value = $ 76.71 per Acre

• Trucking Costs:
  Semi - $2.00 per loaded mile. Note: The Contractor often pays trucking cost.
  

ADDED VALUE CALCULATOR

This analysis provides an example, based on statewide production costs, how farmers can easily evaluate the economic returns of high amylose corn. Producers should use their own cost and yield data in comparing the potential profitability of high amylose corn under their local conditions.

ADDITIONAL WEBSITES

Sources:

• Department of Agricultural and Consumer Economics, University of Illinois, Farm Income and Production Cost Summary from Illinois Farm Business Records 1997.
• Experienced Grower Interviews, February 1999.
• Keeneth, Terry L. Harvesting, Drying and Handling Food Corn in Southwest Indiana.
• Keeneth, Terry L. Southwest Indiana Food Corn Production and Resource Guide.
• U.S. Feed Grains Council, 1996-1997 Value-Enhanced Corn Quality Report.

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Rita Frerichs compiled the information contained in this fact sheet through interviews with experienced producers and from private sector company representatives. This information has not been validated through research carried out by University of Illinois scientists, but this fact sheet has been prepared under the technical supervision of Emerson D. Nafziger, Steven Eckhoff, and Dale Lattz, College of Agricultural, Consumer and Environmental Sciences, University of Illinois at Urbana-Champaign. This work has been carried out as part of a project to Improve Farm Incomes and Rural Communities through Specialty Farm Products funded by the Illinois Council on Food and Agricultural Research (C-FAR) under the Special Research Initiative (SRI) on Rural Community Development.

For more information on other project activities and outputs, contact Burton E. Swanson, Department of Agricultural and Consumer Economics, 332 Mumford Hall, 1301 West Gregory Drive, Urbana, IL. Tel: (217) 244-6978; Fax: (217) 333-5835; or by e-mail: swansonb@uiuc.edu.

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Please note: This analysis is only an example of how to evaluate the economics for producing high amylose corn. Producers should use their own cost and yield estimates.