It has been 30 plus years ago when soybean prices were stuck in the doldrums. Bean prices stayed between $5 and $6 for 25 years (a quarter of a century). That market phenomenon was disrupted about 10 years ago. The Chinese and Indian economies (they are the largest in all of Asia) began to grow 15 percent a year. Those countries now have major problems with obesity and very little starvation. Index fund, commodity fund and hedge fund managers took notice of the large increase in exports from the Americas of soybeans, corn, wheat and now milo. When a large fund buys something, they buy a lot of it. When one fund buys into a commodity, the others will follow. That action pumped trillions of dollars into the commodity markets and drove prices historically higher for longer than any time since WWII.
The markets are pulling back and taking a rest. Rumors of disaster in prices however could be alarmist or exaggerated. Soybeans are showing resistance at over $9 for the time being. It is also highly unlikely that soybean prices will crash back to $7. There is enough buying power in the world to keep prices higher than break even. Soybeans have about the best economic return now of any crop in this area. The input cost is somewhat lower than any of the grass crops. The price is as favorable as or more so than the grass crops.
Considering the current economics of soybeans one must pause and wonder why they are considered a step child. Corn farmers, Rice farmers and Cotton farmers all rotate with soybeans. The bean crop commonly covers half or more of the farmed acres here in the Southeast Missouri flat lands. Half of those bean acres support unnecessarily low yields. Soybeans do not get the attention they deserve. There is more profit potential in soybeans than is recognized. Available soybean varieties have yield potential above 60 bushels on almost any of our soils. The average yield since the advent of these new varieties remains just over 40 bushels. Our soybean crop needs more attention. Agriculture makes up 25 cents of every dollar in our economy. Everyone in our area profits when our farms are more profitable.
Nutrition management in soybeans is more important than ever before. Higher yielding crops use more nutrients. We have increased the macro-nutrients but micro-nutrients are deficient in most bean fields. The nutrition requirements of most soybean fields are ignored. We all know that Rhizobium bacteria allow soybeans to take most of the needed nitrogen out of the air. Are you assuming those bacteria are always in your soil? New research says you are wrong. Water saturated soils are lethal to nitrogen fixing bacteria. We are starting every season without enough nitrogen. Soybean inoculation is the first step toward higher yields. We also have fungi that help the absorption of phosphate and potash. These also die in the flood.
The worst situation is with micro-nutrient deficiencies. At least 3 of 4 bean fields have one or more micro-nutrient deficiencies. In a wet cool year 9 of 10 will have micro-nutrient deficiencies that will severely reduce yields. Foliar application is the way to go with micro-nutrients. When you see signs of nutrient deficiency, like yellow foliage from lack of nitrogen it is too late. By the time the symptoms appear, a yield loss has already occurred. Feed your beans and they will feed you.
When soybean prices went from $5 to $10, the cost of pest infestations doubled. The soybean economy changed significantly. Pest management pays big dividends in soybeans.
Soybean diseases that were not serious on $5 beans suddenly became a serious economic problem when beans went to $10. Proper timing of crop protection products is vital to profitability in beans. Weeds have always been a major pest in beans, they remain so today. Soybeans do not compete well with weeds. Timing of herbicide applications has never been more critical. The insect problem in soybeans is worse for more than one reason. Not only are insect problems more serious now, but also having more insect pests in beans than ever before. Thrips have become a problem in soybeans in just the past few years. We have always had some problems with stinkbugs but now we have three species instead of one. Tarnished plant bugs are moving into beans. Worms in beans are becoming more common every year. Bt corn and Bt cotton have reduced worms in those crops as the worms in beans increased. Bean leaf beetles are now attacking pods in greater numbers than before. During the past five years, insect problems in soybeans have doubled. The cost of those problems has more than doubled. Scouting soybeans has become necessary to achieve more profitable yields. The cost of additional inputs is less than the losses from pests.
If you were satisfied with 40 bushel beans at $12, you will need at least 60 bushels to make the same profit at $10. Properly surveyed bean fields will see an increase of at least 5 -- 10 bushels per acre if the recommendations are followed on a timely basis. Most cotton and rice fields are scouted. Soybeans have as much and probably more profit potential and yet go without attention. If you do not need or want more profit from your crop, neglect your soybeans. If you wish to have more money to spend next fall one way to do that is hire a consultant to look at your soybeans. If you are farming, you will not have the time even if you have the expertise. Give your beans the attention they need; hire a consultant.