Economics of Raising Oats - Practical Cover Croppers

“Profitability, of course, is yield or revenue minus expenses,” reminds Martin Larsen as he discusses his decision to raise oats on his Byron, MN farm.
In this video, filmed in 2022, Martin provides estimates on the expenses and revenue of raising oats to compare to the expenses and revenue of raising corn. He describes how including oats in the rotation changes the overall profitability of his rotation- including reduced applied nitrogen in the corn year, and increased yield in corn and soybean years. Plus, Martin explains how rural economies are impacted by farmers staying profitable with extended rotation.
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This project is supported by The Foundation for Food & Agriculture Research. Any reference to specific products or technology does not constitute or imply an endorsement by FFAR for those products or technology.

Пікірлер: 19

  • @rainturtle5956
    @rainturtle59566 ай бұрын

    How many acres of 40 bushel per acre oats needed to purchase a brand new new til drill, seed handler, grain cleaner after planting expenses???

  • @aaronswanson6719
    @aaronswanson67196 ай бұрын

    There’s no way corn costs $500 more to raise than oats. I raised oats in 2022 and got $4/bu not $7. It was only worthwhile because I sold the straw and I’m including p&k removal and machinery in my straw profit calculation. One definite advantage though was planting alfalfa following the oats harvest and getting an extra ton of alfalfa than I would have otherwise in 2023.

  • @glenfredrickson2881

    @glenfredrickson2881

    6 ай бұрын

    Doesn't mention that he is selling to the food grade market. With the right grain cleaning equipment you can sort out your 100bu/acre oats to the heavy test weight the food grade market demands. Not all 100bu/acre is going to make food grade, but what doesn't gets sold as feed grade. Just takes extra work and equipment, but it pays dividends. 😁

  • @jacoblandis4535

    @jacoblandis4535

    6 ай бұрын

    Fertilizer, seed, crop insurance, drying cost, chemistry... it adds up. His rent number would be low for my area on most ground. I agree though that the price/market isn't there, and I've never been able to get fantastic yields either. Wheat isn't much better but it works better for us.

  • @glenfredrickson2881

    @glenfredrickson2881

    6 ай бұрын

    @@jacoblandis4535 are you the same Jacob I seem to recognize from Kindharvest? Small world this corner of the internet😁

  • @martinlarsen8909

    @martinlarsen8909

    5 ай бұрын

    2022 was a market high for oats and you could contract for $7.00. In 2023, we marketed for $5.50. Keep in mind this is a food grade market. Corn seed, herbicides, drying costs all add up. Especially when N was $1.25 a pound. EVERYONEs cost structure is different but I created a spreadsheet to determine what is best for each producer.

  • @aaronswanson6719

    @aaronswanson6719

    5 ай бұрын

    @@martinlarsen8909Where do you deliver your oats to?

  • @notsimplyorganic1053
    @notsimplyorganic10536 ай бұрын

    This is hilarious, sounds like some oat lover fan fiction. If your in the corn belt and tell someone you're renting land from your planting oats, they'll be looking for a new tenant since they know you'll soon be broke. I'm all for pushing back against larger corporate farms, and am a firm believer in "we need smaller farms and more of them", but the economics (currently) in small grain is definitely not that answer.

  • @glenfredrickson2881

    @glenfredrickson2881

    6 ай бұрын

    You have to look at more than just the oat crop, he is planting oats super early and getting around 100bu/acre oats. Oats have a reducing effect on the soil so you make more micronutrients available for your next crop. Also since oats are harvested early you can plant a warm season cover crop afterwards with legumes to grow your nitrogen for your corn next year. So your corn the following season won't need as much nitrogen and possibly less P and K. Which make a person more profitable on corn. He also said the soybeans are healthier because of the longer rotation. So get out of you comfort zone and try something

  • @notsimplyorganic1053

    @notsimplyorganic1053

    6 ай бұрын

    @@glenfredrickson2881 you must own the land you farm. If so, yes I'd agree you can take some chances, have lower revenue for a year. I rent every last acre I have, whether it's from my family or other people's. I can't go into a bank, say well this year I'm gunna lose a pile of money on the ground I'm paying too damn much rent for because maybe hopefully I might make something the following year, I would never get a operating loan. Then some BTO would just come in, probably just do corn on corn on corn ect. So until there's a market for small grain that will support it cash flowing on its own ill stick with my previous stance that this way of farming is a pipe dream. At least for those that need to cash flow

  • @sandsock

    @sandsock

    6 ай бұрын

    @@notsimplyorganic1053 i started raising wheat again,, you guys are better on the numbers than me. but i am finding. if i grow it in places where my cattle have access to it. i can either let them graze the regrowth after head harvest. or i can mow and bale it up as hay, in the milky stage. then plant soybeans and not take a yield dump or uninsured it from the primary crop. when i plant wheat if it looks like a drought. i can shread and spread the straw , to hold moisture back/capture for the 2nd crop beans. small grains also, let me haul a ton of manure to a field and then when weed growth kicks off. i have a chance to start chisel plowing very early for teh following years corn. i think i can spread a little fertilizer on the plowed ground and 1 pass with a field cultivator and start planting corn in it next spring. adding small grains back to the farm just add unconventional benifits, you maynot being thinking of early on.

  • @martinlarsen8909

    @martinlarsen8909

    5 ай бұрын

    I was going to stay off this chat, but I think I will chime in. We raise well over 100 bushel oats and hitting test weight has not been a problem over the five years of growing. The group is getting quite large and there are 4000 acres planned for the 2024 growing season. We are getting a premium on the oats for high test weight. There are some farmers making money on $400 land rent while growing oats. I know it sounds comical but looking into the system is more serious than you may think.

  • @glenfredrickson2881

    @glenfredrickson2881

    5 ай бұрын

    @@martinlarsen8909 I enjoyed your in person presentation last March in Bellchester. I think you did a better job explaining your oats growing experience when you have your spreadsheets. But obviously a short video is going to be harder to get all points across as well. Also my neighbor is claiming to get 135 bushel oats, he might be part of your grower group as we are around 20 miles north of you. Although I know Ray does rent some land on the north end of dodge county.

  • @geraldseivewright711
    @geraldseivewright7116 ай бұрын

    you take very little out of the soil with oats corn takes a lot from the soil