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Illinois Specialty Farm Products

ORGANIC FOOD-GRADE CORN - UPDATED FOR 2003

Description. Organic corn is non-genetically modified corn grown without the use of “synthetic” fertilizers, herbicides, insecticides or fungicides. Emphasis is placed on building the soil with organic amendments using crop rotations, crop residues, legumes, animal manures, mechanical cultivation, approved mineral-bearing rocks and aspects of biological pest control to maintain soil productivity, supply plant nutrients, and control insects, weeds and other pests. Producers pursuing organic production must not use synthetic fertilizers, pesticides or GMOs three years prior to becoming certified. In October 2002 the USDA approved national standards for organic certification. There is a cost share program available to offset costs associated with organic certification.
Trends in demand. Organic production practices are increasing each year, on average by 20%. The majority of organic corn production occurs in Minnesota, Iowa, North Dakota and South Dakota. There is a large demand for organic corn for both food processing and feed use. Adoption of organic production is growing slowly in Illinois, with more acres in soybeans than corn. Ninety percent of the organic corn produced is used domestically, with exports limited by competition from Argentina and China. Due to the significant adoption of GMO corn, maintaining organic corn production will become more difficult due to pollen drift in both grain and seed production. Corn grown organically is used in organic cattle operations as well as processed into organic food ingredients. Organic corn generally yields less than corn grown using conventional methods, depending on hybrids grown, soil fertility status, and weed and other pest management. Lower yields are offset by the premium offered for organic corn.

RECOMMENDED PRODUCTION MANAGEMENT PRACTICES

  • Seed Selection. If contracted, the contractor specifies several non-GMO corn hybrids for use. Select the hybrids that match your particular geographical latitude. Also consider personal management or cultural practices.
  • Site Selection. The crop rotation pattern will designate which fields go into corn production.
  • Crop Rotation. Organic systems generally require a five-crop rotation of corn, soybeans, cereal, legume green manure, and a fifth crop that is varied from year to year.
  • Isolation. Isolation from non-organic corn is necessary. Allow for 24-36 border rows around field. These border rows should be harvested separately and sold as non-organic corn.
  • Seedbed Preparation. Organic production requires good seed-soil contact and moderate soil moisture for almost 100% germination and emergence. Generally, two trips with a conventional tillage tool will kill the second growth of weeds and produce an adequate seedbed.
  • Plant Population. Organic production practices prefer plant populations of 22,000 to 24,000 plants per acre for larger kernel development and stronger stalks.
  • Planting Date. The latter part of May is the best planting period, after soils have warmed sufficiently and second or third flushes of weeds have been mechanically destroyed, if soil conditions permit.
  • Fertility. Managing crop systems to naturally build soil nutrient levels is the preferred approach. Livestock manure and cover crops, such as clover, are important sources of nitrogen, along with vetch, lupine, and alfalfa. Other sources of organic nutrients are fish emulsions, natural phosphates, bone meal, cottonseed meal and seaweed.
  • Insect and Disease Management. Crop rotations are used to control insects and disease.
  • Weed Control. Effective weed control for corn is usually provided by the following management practices: mechanically till corn with rotary hoe four or five days after planting and once more after corn is emerged. Immediately start first cultivation after last pass with rotary hoe and cultivate two or more times depending on soil conditions and degree-days. Propane burners may also be used for small weeds.

RECOMMENDED HARVEST AND POST-HARVEST MANAGEMENT PROCEDURES

Quality is of particular importance in the organic market place so representative grain samples are collected and sent to potential buyers throughout the harvest, drying, and storage process. Other than this, management practices are much the same as for non-organic food-grade corn.

  • Harvesting Organic Corn. To avoid excessive mechanical damage to kernels make sure the combine is properly adjusted. Set the clearance and speed of the cylinder according to the operator’s manual as a starting point and make slight adjustments in the field as needed. If conventional crops are also harvested, the machine must be thoroughly cleaned between crops.
  • Drying Strategies. Corn can be machine dried using conventional methods. Low-temperature drying is recommended for increased storability due to low breakage, less fines, improved aeration, and less opportunity for fungal growth. Grain kernel temperature should be kept below 140?F during the entire drying process to minimize undesirable quality losses. Field drying is best and allows the kernel to reach full-maturity.
  • Corn Handling and Cleaning. Organic corn must be kept separate in order to maintain value. Make sure that augers to and from the dryer are not causing damage. Keep augers full when running and consider replacing pulleys to reduce auger speed and maintain grain quality. Clean dry corn before placing it into a storage bin to improve airflow and reduce the potential for spoilage problems. Storage bins should be swept clean prior to placing grain in them to reduce insect and contamination problems. Once a month during the fall and winter, you should run a cooling cycle to lower grain temperature by 10 to 15?F. The remainder of the time, the fan should be covered to minimize moisture accumulation in the stored grain, especially during premature warming periods in the early spring.

SAMPLE PARTIAL BUDGET ANALYSIS

  • Per Acre Variable Cost Comparison:
    Regular Hybrid Corn Organic Corn
    Soil fertility
    $50
    Soil fertility
    $45
    Pesticides
    32
    Pesticides
    0
    Seed (28,000 pop.)
    35
    Seed (24,000 pop.)
    30
    Drying
    16
    Drying
    10
    Mchy. repair, fuel & hire
    28
    Mchy. repair, fuel & hire
    75
    Storage
    29
    Storage
    24
    Operating Interest
    6
    Operating Interest
    5
    Total
    $196
    Total
    $189

  • Organic Corn Prices:
    Prices range from $3.25-$4.00 per bushel for feed grade organic corn, and $4.50-$8.00 for organic food grade corn.
  • Increased Profit Potential Per Acre:
    Regular Hybrid Corn:

    155 Bu/acre x $2.30 per Bu = $356.50
    $356.50 - $196.00 expenses = $160.50 per acre Regular Hybrid Corn

    Organic Feed Grade Corn:
    135 Bu/acre x $3.60 per Bu= $486.00
    $486.00 - $189.00 expenses = $297.00 per acre Organic feed grade corn
    Added Value - $136.50 per acre

    Organic Food Grade Corn:
    135 Bu/acre x $6.25 per Bu= $843.75
    $843.75 - $189.00 expenses = $654.75 per acre Organic Food Grade corn
    Added Value - $494.25 per acre

  • Trucking Costs:
    • Semi - $2.00 per loaded mile (Contractors often bear the trucking cost).

ADDED VALUE CALCULATOR

ADDITIONAL WEBSITES

Sources:

  • Department of Agricultural and Consumer Economics, University of Illinois. Farm Income and Production Cost Summary from Illinois Farm Business Records 1998.

  • Experienced Grower Interviews, September – February 2000.

  • Fairview Farms. The 1997 Fairview Farms Crop Harvest and Storage Guide.

  • Gulbranson, Lisa. 1998. Organic Certification of Crop Production in Minnesota. University of Minnesota. University of Minnesota Extension Service.  BU-7202-S. 

  • Illinois Stewardship Alliance. 1999. Progress Report on the Farming Systems Comparison Project: Yields, Economicsand Water Quality.

  • Macey, Anne. 1992. Organic Field Crop Handbook. Canadian Organic Growers Inc. Ottawa, Ontario.

  • South Dakota State University. 1993. Agronomic, Economic, and Ecological Relationships in Alternative (Organic), Conventional, and Reduced-till Farming Systems.

  • U.S. Feed Grains Council. 1998-1999 Value-Enhanced Corn Quality Report.

______________________________________________________

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.

______________________________________________
This analysis is only an example of how to evaluate the economics for growing organic soybeans. Producers should use their own cost and yield estimates, plus any premiums quoted by participating elevators in calculating estimated returns for their own situation.
These are the prices paid by 2 firms contacted about organic corn

 

Developed by the College of Agricultural, Consumer, and Environmental Sciences
at the University of Illinois at Urbana-Champaign

Funded by the Illinois Council on Food and Agricultural Research