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ARS Home » Southeast Area » Stoneville, Mississippi » Crop Genetics Research » Research » Publications at this Location » Publication #315662
Title: Profitability and risk analysis of soybean planting date by maturity group

Author
item BOYER, CHRISTOPHER - University Of Tennessee
item STEFANINI, MELISSA - University Of Tennessee
item LARSON, JAMES - University Of Tennessee
item SMITH, AARON - University Of Tennessee
item Mengistu, Alemu
item Bellaloui, Nacer

Submitted to: Agronomy Journal
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 6/18/2015
Publication Date: 9/4/2015
Citation: Boyer, C., Stefanini, M., Larson, J., Smith, A., Mengistu, A., Bellaloui, N. 2015. Profitability and risk analysis of soybean planting date by maturity group. Agronomy Journal. Vol 107 Issue 6 P.2253-2262.

Interpretive Summary: Limited knowledge exists on estimated soybean yield response to planting date to determine the profit-maximizing planting date for soybean production by maturity group in the southern United States. The objective of this study was to determine the optimal combination of soybean planting date and crop insurance coverage for growers in Tennessee. Net returns were simulated for four maturity groups with four revenue protection insurance coverage levels to determine the optimal maturity group and coverage level preferred by risk averse producers under two planting intervals. The results from a multi-year experiment in Milan, TN showed that the profit-maximizing planting date for soybeans in Tennessee ranged between 13 May and 24 May for all the maturity groups, and specifically, the profit-maximizing planting dates were 24 May, 16 May, 13 May, and 22 May for maturity groups II, III, IV, and V, respectively. The risk analysis shows that a risk neutral to slightly risk averse decision maker would prefer maturity group III with no revenue protection; however, as risk aversion increased the preferred scenario was maturity group III with 80% revenue protection. The results help producers determine optimal planting windows and crop insurance options for soybean production in Tennessee based on their risk preferences.

Technical Abstract: Limited knowledge exists on estimated soybean yield response to planting date to determine the profit-maximizing planting date for soybean production by maturity group (MG) in the southern United States. Furthermore, determining the optimal MG and crop insurance coverage level that is preferred by risk averse producers under two planting date windows would be a unique contribution to the literature. The objective of this study was to determine the optimal planting date for soybeans with four MGs in Tennessee. Net returns were simulated for four MGs with four revenue protection (RP) insurance coverage levels to determine the optimal MG and coverage level preferred by risk averse producers under two planting intervals. A multi-year experiment (2008-2010) was conducted on MG II, III, IV, and V planted at different planting dates in Milan, Tennessee. The results showed that the profit-maximizing planting date for soybeans in Tennessee ranged between 13 May and 24 May for all the MGs, and specifically, the profit-maximizing planting dates were 24 May, 16 May, 13 May, and 22 May for MG II, III, IV, and V, respectively. The risk analysis shows that a risk neutral to slightly risk averse decision maker would prefer MG III with no revenue protection; however, as risk aversion increased the preferred scenario was MG III with 80% RP. The results help producers determine optimal planting windows and crop insurance options for soybean production in Tennessee based on their risk preferences.