630.7 Il6b no.610 cop. 8 NOTICE: Return or renew all Library Materials! The Minimum Fee for each Lost Book is $50.00. The person charging this material is responsible for its return to the library from which it was withdrawn on or before the Latest Date stamped below. Theft, mutilation, and underlining of books are reasons for discipli- nary action and may result in dismissal from the University. To renew call Telephone Center, 333-8400 UNIVERSITY OF ILLINOIS LIBRARY AT URBANA-CHAMPAIGN FIB 24 L16I— O-1096 UNIVERSITY OF ILLINOIS LIBRARY AI URBANA-CHAMPAIGN AGRICULTURE - - • VARIABILITY OF YIELDS AND INCOME FROM MAJOR ILLINOIS CROPS 1927-1953 By Earl R. Swan$on Counties with high year- to-year crop-yield varia- bility are heavily shaded. Lighter shading indicates less variability. BULLETIN 610 University of Illinois Agricultural Experiment Station f " •*>•• CONTENTS Part | — Yield Variability 4 Part II — Effect of Crop Diversification on Farm Income and Income Variability 14 Summary 27 Access to the facilities of the Illinois Electronic Digital Computer (Illiac) sub- stantially reduced the computational burden involved in this study. Urbana, Illinois April, 1957 Publications in the Bulletin series report the results of investigations made or sponsored by the Experiment Station no. <*'0 . JT VARIABILITY OF YIELDS AND INCOME FROM MAJOR ILLINOIS CROPS 1927-1953 By EARL R. SWANSON, Associate Professor of Agricultural Economics FARM BUSINESS decisions are based on expectations for the fu- ture which in turn are largely founded on past experience. An unusual experience may obscure the more common events which may be equally relevant to wise planning. Therefore to gain a consistent, long-range view, the following study of crop yield and income experi- ence in Illinois reviews the 27-year period 1927-1953. Such a review may be used as a guide in making decisions on land valuation, crop insurance, choice of crops, and related farm busi- ness matters. Part I of the report contains average per-acre yields for five crops and an estimate of their variation in each county and for the state as a whole during the period of the study (1927-1953). By comparing county figures with each other and with those for the entire state, the reader may have a rough guide useful in land appraisal and crop insurance programs. Such a guide constructed from county averages cannot, of course, be considered to reflect accurately expected yields on any given farm. The more homogeneous the county, however, the more closely such averages may approach likely experience on individ- ual farms in the county. A customary procedure in land valuation is to use average yields in determining the annual income which is used as a basis for estimating the value of the farm. In addition to considera- tion of the average level of yields, attention should be given to 'the variability of such yields. For example, an adjustment should be made in the values of farms in different counties that have the same average yields but are expected to differ in the stability of these yields. Lending agencies may also use yield variability in adjusting the amount that will be loaned to allow for differences in such variability among farms in different areas. Appraisal of land for tax purposes might take differences in yield dependability into account along with average productivity. The data in Tables 1-5 are significant to all-risk crop insurance programs featuring premium rates based on normal county yields. Premiums for such programs are determined in the following manner: Let us say that the long-time county average corn yield is 50 bushels per acre. If the farmer wishes to insure for 80 percent of the county average, his premium would be based on 40 bushels. If the actual aver- 4 BULLETIN No. 610 [April, age yield for the county for that year is 35 bushels, the claim is 5 bushels per acre irrespective of the insured farmer's yield. Farmers considering such insurance will want to know if the premiums are set on current figures which take into account upward trends in yield averages. It is to the advantage of commercial insur- ance agencies to keep premiums in line to encourage farmers to buy their insurance. If the premiums are set on yield averages which are unrealistically low, premiums over a period of years would so greatly exceed claims as to discourage farmers from purchasing this insurance. The data in Tables 1-5 may also be helpful in differentiating between high- and low-risk counties in establishing premium rates. In Part II, the effect on income and income variability of various degrees of specialization in certain crops is examined. Such figures can be useful to the farmer who does not want to move to another county with less variability than the location he is presently farming. He may wish to consider reducing uncertainty by diversification of crops. (The undesirable consequences of yield variability may, of course, also be met by crop insurance and by the maintenance of cash reserves large enough to tide him over unfavorable years.) In areas such as Illinois where there are rather stable yields for all crops, it is believed that the proportion of total land in each of the three classes of crops, (1) cultivated, (2) small grain, and (3) meadow, will be determined chiefly by considerations other than reduction of income variability. Thus the expected effect of meadow on succeeding corn crops, maintenance of physical properties of the soil, distribution of labor throughout the season, and considerations of livestock feed are likely to be more important than income variability in choosing the proportion of the three classes of crops. However, choices writhin each of these three classes might be made with a view toward reducing income variability. Specifically, Part II seeks to find which combinations of corn and soybeans and of wheat and oats minimize income variability from land devoted to these crops. Part I — YIELD VARIABILITY One of the components of year-to-year income variability is the year-to-year fluctuation in crop yields. Average yield data for counties are published by the Illinois Cooperative Crop Reporting Service and are the sole source of yield data used in this study. Use of county average yields tends to underestimate the variation for any particular farm or field within the county. Ideally, crop yields for a particular 1957] 80 70 60 VARIABILITY OF YIELDS AND INCOME FROM CROPS ;S'I2.5 WARREN COUNTY CORN YIELDS (1927- 1953) 1927 "30 '35 40 55 50 1953 Yield variability measured from average and trend. (Fig. 1) farm over a long period of time would provide a basis for a more precise investigation of yield fluctuations. However, such data are not available for all areas of the state for the length of time comparable to that of the county average data of the Illinois Cooperative Crop Reporting Service. Yield data for townships would also be more spe- cific and therefore more suitable than county averages but are likewise not available. During the 1927-1953 period there has been, almost without excep- tion, an upward trend in county yields for the five crops studied — corn, soybeans, oats, wheat, and hay. New crop varieties, improved machinery, increased fertilizer use, and other technological advances are responsible for this upward yield trend. Our focus in measuring yield variation is, however, to estimate the influence of such natural causes as varying weather conditions. Therefore it is desirable to measure yield fluctuation as independently as possible of the long-time trend in yields over the years. The procedure is illustrated in Figure 1. The Warren county average corn yields are plotted for the 27-year period 1927-1953. The average yield for the entire period is 50.0 bushels per acre. The standard deviation1 S, is 12.5 bushels. The range from the average minus one standard deviation to the average plus one standard devia- tion will include approximately two-thirds of the annual yields. Tn this case, 18 yields fall in the range 37.5 bushels to 62.5 bushels. Yield variability is also shown measured about a trend line.2 The yield range between the two lines drawn parallel to the trend line — 1 For method of computation see any standard statistical text, e.g., Snedecor, G. W., Statistical Methods, Ames, Iowa State College Press, 1946. 1 Fitted by the method of least squares. See Snedecor, Chapter 6. 6 BULLETIN No. 610 [April, one 9.4 bushels above and the other 9.4 bushels below — also includes approximately two-thirds of the yields. The standard deviation about the trend line (9.4 bushels) is called the standard error of estimate, Sy.x. Use of a straight line instead of a curve to approximate a trend line from which to measure yield variability may tend to cause over- estimation of the yield variability. Corn, for example, shows evidence that increases in yield have not been at a uniform rate. A measure of variability should also be related to the average level of yield. It might be expected that the actual variations in bushels would be greater in a county that averages 60 bushels of corn per acre than in a county which averages only 40 bushels. A measure of vari- ability that is expressed as a percent of average yield would therefore be more useful in comparing areas than one expressed in absolute terms. Further, if such a measure of relative variation is to be used to compare crops or counties for forming future expectations, it may be desirable to express the relative variability as a percent of recent average yields. Accordingly, the standard error of estimate was divided by the average yields for the five-year period 1949-1953. The resulting measure of yield variability, expressed as a percent, is in the third column of Tables 1 through 5. (A high value indicates high variability.) The first column in these tables gives the average yield for the 27-year period and the second column the standard error of estimate based on the trend line for the 27 years. In addition to the likely underestimation of variability for a spe- cific farm or field when county data are used (see page 4), two more limitations of the basic data should be noted. First, the yield data reported by the Cooperative Crop Reporting Service are based on harvested acres rather than planted acres. This tends to overestimate yields of planted acres in years of crop abandon- ment. A reduction in year-to-year variation may be expected as a result of using yields based on harvested acreages. A second limita- tion of the basic data is the measurement of hay yields. Since few farm- ers actually weigh the hay produced, considerable errors may occur in reporting hay yields. Without additional information, the effect of such individual reporting errors cannot be estimated. Certain regional differences within the state are apparent when each county is given a weighted rank according to its average yield variability. The following method was used to rank the counties: First each crop was weighted according to the fraction it repre- sented of the total county acreage devoted during 1949-1953 to the (Text continued on page 12) 1957} VARIABILITY OF YIELDS AND INCOME FROM CROPS Table 1. — Average Corn Yields in Illinois Counties and Their Variation, 1927-1953 County Average yield in bushels per acre 1927-53 Standard error of estimate about trend 1927-53 Standard error in column 2 expressed as a per- cent of 1949-53 average yield County Average yield in bushels per acre 1927-53 Standard error of estimate about trend 1927-53 Standard error in column 2 expressed as a per- cent of 1949-53 average yield Adams 41.9 11.9 21.2 Lee 51.2 6.3 9.7 Alexander . 29.2 5.8 18.6 Livingston . . . 44.1 8.6 16.2 Bond . 31.6 8.3 19.5 Logan 48.3 10.6 16.7 Boone . 48.6 8.0 12.2 McDonough 47.1 11.7 20.2 Brown . 39.9 11.9 22.9 McHenry . . . . 46.2 8 0 13 3 Bureau . 52.7 7.7 12.1 McLean 48.0 8 0 13 9 Calhoun . . . . 44.0 10.2 20.0 Macon 46 6 10 5 17 7 Carroll . 54.2 6.4 9.1 Macoupin . . . 38.3 9.9 18.8 Cass . . . 45 2 9 8 17 5 Madison 37 2 9 6 20 9 Champaign . . . 48.2 9.0 15.3 Marion 24.4 7.9 23.7 Christian . . . . . 44.3 10.8 17.9 Marshall .... 46.8 9.2 15.7 Clark . 37.1 5.6 12.6 Mason . 36.9 8.5 17.8 Clay . . . 25.8 8.1 23.5 Massac 31.4 5.8 16.7 Clinton . 31.2 10.3 26.5 Menard .... 44.5 9.6 16.7 Coles . 42.9 8.6 16.3 Mercer 49.3 8.6 14.7 Cook . 41.3 8.0 16 3 Monroe . . . . 38 0 8.9 20.4 Crawford . . . . . 35.7 6.4 14.7 Montgomery. 37.3 9.4 17.4 Cumberland . . . 33.9 7.2 15.9 Morgan 46.3 10.9 18.3 DeKalb . 53.7 7.8 11.8 Moultrie. . . . 43.7 9.7 17.3 DeWitt . 45.9 9.2 16.3 Ogle 51.9 6.2 9.3 Douglas . 47.0 8.6 14.7 Peoria 46.5 9.2 15.8 DuPage . 44.8 7.4 12.8 Perry 24.1 6.4 20.4 Edgar . 46.9 7.9 14 6 Piatt 49.2 10.0 15.8 Edwards . 33.4 8.1 20 0 Pike . 41.9 11.3 20.9 Effingham. . . . . 30.3 6 4 15 0 Pope .... . 27.3 6.2 19.0 Fayette . 28.8 8.1 20.5 Pulaski 29.5 5.1 17.6 Ford 44 2 7 9 14 8 Putnam 51 2 8.6 14.2 Franklin . 24.5 6.3 20.2 Randolph . . . 33.5 9.8 25.7 Fulton . 45.9 10.2 18.1 Richland .... . 27.4 8.0 22.5 Gallatin . 35.4 7.2 17.7 Rock Island . 51.5 7.3 12.2 Greene . 43.1 10.8 19.9 St. Clair 37.4 9.5 21.3 Grundy . 43.3 8.4 15 8 Saline . 31.5 6.6 18.2 Hamilton . . . . . 26.3 6 0 18 5 Sangamon . . . . 44.4 10.0 17.4 Hancock . 44.4 12.2 22 1 Schuyler .... 43.0 11.7 21.0 Hardin . 28.1 6 9 21 4 Scott . 43.9 11.1 21.2 Henderson . . . . 48.3 8.7 15.5 Shelby . 38.7 8.4 16.6 Henry . 51.4 7.8 12 6 Stark . 49 1 9.4 15.7 Iroquois . . . 42.9 7 9 15 5 Stephenson . 52.7 6.8 10.2 Jackson . 31.9 7 1 20 5 Tazewell . 48 6 8.4 13.7 Tasoer. . . 31.4 6 9 16 6 Union 30 1 6.3 19.8 Jefferson . 24.4 6.5 20 2 Vermilion 44 0 7.8 14.2 Tersev . . 41.3 10.4 20 6 Wabash . 38.1 8.1 21.2 Jo Daviess . . . . 50.1 7.2 11.4 Warren . 50.0 9.4 15.9 Johnson . 25.5 5.4 20 3 Washington. . . 25.9 9.0 26.3 Kane . 51.4 7.5 11 7 Wayne . 25 4 7.1 21.4 Kankakee. . . . . 41.9 8.1 15 4 White . 32.8 7.3 19.0 Kendall . 46.3 10.1 17.6 Whiteside . . . . 52.6 6.5 10.2 Knox . 48.3 8.9 14.8 Will . 40.7 8.3 16.4 Lake . 42.0 7.4 13.6 Williamson . . . 25.5 6.4 21.6 LaSalle . 48.7 9.1 15 5 Winnebago . 49.2 6.1 9.6 Lawrence . 32 4 6.3 16 2 Wood ford . 50.6 9.0 5.1 State8 . . 43.9 7.2 13.2 • Based on average annual yields for the state. Table 2. — Average Soybean Yields in Illinois Counties and Their Variation, 1927-1953 County Average yield in bushels per acre 1927-53 Standard error of estimate about trend 1927-53 Standard error in column 2 expressed as a per- cent of 1949-53 average yield County Average yield in bushels per acre 1927-53 Standard error of estimate about trend 1927-53 Standard error in column 2 expressed as a per- cent of 1949-53 average yield Adams 19.9 3.3 12.3 Lee 20.9 2.0 7.7 Alexander8 . . . Bond . 15.2 . 13.8 2.9 2.7 14.6 14.7 Livingston . . . Logan 20.7 22.1 2.7 2.6 10.1 9.0 Booneb . 19.3 1.9 7.7 McDonough . 22.0 3.2 11 0 Brown . 18.5 3.1 13.0 McHenryd. . . 18.5 2.4 10 0 Bureau . 21.9 2.2 7.6 McLean . 22.6 2.9 10 0 Calhoun . 18.4 2.9 12.7 Macon 22 9 2.9 10 1 Carroll0 . 19.4 2.7 11.6 Macoupin 18 9 2.3 9 3 Cass . 19.8 3.1 12.0 Madison 17 5 2 7 12 4 Champaign . . . 22.9 2.9 10.3 Marion 11.9 3.1 21.2 Christian . . . . . 22.0 2.7 9.9 Marshall .... 21.6 2.9 10.4 Clark . 15.5 1 7 8 1 Mason 17 6 3 2 13 0 Clay. . . 11.9 2.4 16.9 Massac0 . 12.8 3.5 21.6 Clinton . 14.8 3.5 19.7 Menard 20.1 3.0 11.0 Coles . 20.1 2.6 9.8 Mercerh 21 2 2.7 10 5 Cookd . 19.0 2.0 8.5 Monroe* 16 1 3 6 17 0 Crawford . . . . 14.0 2.5 14 0 Montgomery. 18 5 2 4 9 9 Cumberland. . . 14.9 2.1 10.5 Morgan 21.6 2.8 9.9 DeKalb . 22 0 2 0 7 4 Moultrie 21 9 3 5 12 2 DeWitt 22 4 2 9 10 4 Ogleh 22 1 6 0 21 1 Douglas . 22.6 2.8 9.9 Peoria . 22 1 3.1 10.3 DuPaged . 19.4 2.1 8.5 Perry 11 4 3.4 23 6 Edgar . 21.6 2.6 9.7 Piatt 23 6 2 8 9.7 Edwards . 14.0 2.7 16 1 Pike 18 7 2 8 11 2 Effingham. . . . . 14.0 2 4 13 0 Popec 12 8 3 1 18 9 Fayette . 13.2 2.9 16.7 Pulaskid 13.8 2.8 15.7 Ford . 20.8 2.8 10.6 Putnam . 20.9 2.1 7.3 Franklin . 11.3 2.7 19.0 Randolph . . 14 1 3.5 18.6 Fulton . 21.0 3.2 12.0 Richland . . . 11 8 2 2 14.7 Gallatin . 14.2 2.3 12 5 Rock Island 22 3 2.6 9 9 Greene . . . . 19 3 3 1 12 2 St Clair 17 1 3 4 15 5 Grundy6 . 20.2 2.1 8.1 Saline 14.0 2.4 13.3 Hamilton . . . . . 12.2 2.6 16.7 Sangamon . . . 21.6 2.8 10.1 Hancock . 20.9 4.0 15.2 Schuyler . . . 19.5 3.5 13.8 Hardinf . 12.9 2.4 17.4 Scott 19 5 3.1 12.4 Henderson . . . . 21.0 2.5 9.4 Shelby 18 3 2.9 12.2 Henry . 21.9 2 4 8.3 Starkh 22 4 2 5 8.7 Iroquois . . . 20 4 2 7 10 4 Stephenson . 19 6 2 2 9 4 Jackson . . . . 13 5 2 9 16 9 Tazewell 22 6 2 6 8 7 Tasoer . 12 9 2 2 12 4 Union0 13 7 3 0 17 4 Jefferson . 12.2 2.9 18.8 Vermilion . . . 21 0 2.5 9.7 Jersey. . . 19.7 3.8 15.3 Wabashd . . 15 5 2.9 18.4 Jo Daviess8. . . 19.5 2.4 10 5 Warren . 23 2 2.8 9.3 Johnson . . . . . 12.3 2.7 19 6 Washington. 12 6 3 7 21.3 Kane . 20.4 1 5 5 9 Wayne . . 11 7 2 4 16.4 Kankakee. . . . 20.0 2 3 9 0 White 13 7 2 6 14.6 Kendall... . 20 4 2 3 8 3 Whiteside 19 9 2 4 9.4 Knox .... 22 1 2 6 8 8 Will 19 4 2 0 8.3 Lake" . 18.4 2.1 9.7 Williamson . . 11.5 3.3 23.9 LaSalle . . 21 9 2 6 9 1 \Vinnebago 18 2 2 1 9.1 Lawrence. . . . . 13.1 2.5 15.2 Wood ford 22 9 3.1 10.1 State} . . 20.0 2.1 9.3 • No data reported for 1927, 1928, 1932, 1933, and 1935. b No data reported for 1928 and 1934. 0 No data reported for 1927 and 1928. d No data reported for 1928. e No data reported for 1934. f No data reported for 1927, 1928, 1930, 1931, 1932, 1933, 1934, 1940. and 1950. 8 No data reported for 1927, 1928, and 1934. h No data reported for 1927. 1 No data reported for 1933. i Based on average annual yields for the state. VARIABILITY OF YIELDS AND INCOME FROM CROPS Table 3. — Average Oats Yields in Illinois Counties and Their Variation, 1927-1953 County Average yield in bushels per acre 1927-53 Standard error of estimate about trend 1927-53 Standard error in column 2 expressed as a per- cent of 1949-53 average yield County Average yield in bushels per acre 1927-53 Standard error of estimate about trend 1927-53 Standard error in column 2 expressed as a per- cent of 1949-53 average yield Adams 30.7 8.5 25.6 Lee 41.2 8.2 17 9 Alexander. . . . . 23.9 5.7 27.7 Livingston. . . . 33.8 9 2 25 8 Bond . 24.0 9.9 41.9 Logan 37.0 9 0 21 3 Boone . 40.4 8.3 17.4 McDonough . . 35.9 9 2 24 7 Brown . 28.7 9.3 31.0 McHenry 42 4 8 4 17 6 Bureau . 40.5 7.4 16.7 McLean . ... 36 2 8 7 22 4 Calhoun . . . . . 26.8 6.3 26 5 Macon . . . 36 2 10 3 25 2 Carroll . . . . 40.5 7.3 16 1 Macoupin . . 30 3 7 8 22 4 Cass . 32 6 7 3 19 9 Madison 26 6 7 1 27 5 Champaign. . . 35.1 8.9 23.8 Marion 20.4 6.3 32 1 Christian . . . . . 35.0 9.6 23.0 Marshall 35.9 8.4 20.7 Clark . 22.5 7.6 35.2 Mason 28.1 7.5 24 5 Clay. . . 18.5 6.2 36.5 Massac 23.8 5.3 24 3 Clinton . 28.6 8.0 33.9 Menard 34.4 8 2 20 4 Coles . 32.1 8.2 24 1 Mercer . . . 34 6 7 9 21 1 Cook . 40.1 9.5 22 1 Monroe 28 7 5 8 24 4 Crawford . . . 21 4 7.5 37 5 Montgomery. 28 3 8 0 23 3 Cumberland. . . 21.7 7.8 36.1 Morgan .... 35.8 7.9 18.6 DeKalb . . . 46 9 8 8 17 1 Moultrie 34 0 9 2 25 3 DeWitt . 34.5 9.4 24.7 Ogle 40.3 8.5 19.0 Douglas . 35.3 9.2 24.3 Peoria . . . 35.1 9.4 24.2 DuPage . 43.3 9.7 19 6 Perry 19 5 5.3 29.8 Edgar . 33.3 8.2 24 3 Piatt 36 6 9.7 23.2 Ed wards . 22.6 8 0 41 7 Pike 28 7 7.8 26 9 Kffingham. . . . . 22.1 7 6 34 2 Pope 21 3 5 6 29 8 Fayette . 22.3 6.7 27.9 Pulaski 24.3 4.8 23.1 Ford . 33.0 8.5 24.4 Putnam 41.2 10.3 23.1 Franklin . 20.2 5.6 29.2 Randolph . . . 26.9 6.3 26.5 Fulton . 34.4 8.9 24.9 Richland . . . 19.5 7.1 34.8 Gallatin . 22.0 6.8 40.0 Rock Island 41.5 10.3 27.0 Greene . 30.2 6.5 20 6 St Clair . . . 29.3 6.2 24.6 Grundy . 35.3 9.7 25 3 Saline . . . 21.7 6.6 38.8 Hamilton . . . . . 19.6 5.7 32 8 Sangamon 37 2 8.8 20.3 Hancock . 33.5 7.6 22 1 Schuyler 31 3 9.7 28.5 Hardina . 18.9 6 1 36 3 Scott 31 3 7.6 22.8 Henderson . . . . 34.0 7.6 21.1 Shelby 27.6 8.2 27.3 Henry . 39.0 8 2 19 6 Stark 37 0 9.3 22.6 Iroquois . 31.7 8 2 24 3 Stephenson 41 5 8.7 18.0 Jackson . 25.4 5.7 28 5 Tazewell 36 8 8 5 21.9 Jasper . 20.0 6.7 32 5 Union 24 0 4 8 21.8 Jefferson . 18.9 5.3 31 9 Vermilion 32 2 8 8 25.3 Jersey . 28.0 7.8 27 5 \Vabash 24 4 7.7 49.4 Jo Daviess. . . . 39.8 8.5 18.6 Warren . . . 36.3 8.7 21.8 Johnson . 22.5 5.5 30 2 \Vashington 25 5 6 4 27.6 Kane . 46.5 9 2 18 3 \Vayne 19 1 6 3 37.5 Kankakee. . . . . 34.4 9.0 22.4 White 21.7 6.0 31.6 Kendall . 42 2 8 8 18 8 \Vhiteside 40 9 7.8 17.3 Knox . 35.8 9.1 23.8 Will 37.5 9.5 22.4 Lake . 42.4 8.6 18.9 Williamson . . . 20.9 5.0 27.5 LaSalle . 39 9 9.3 21 4 Winnebago 38 5 8.1 18.2 Lawrence . . . 22 4 6.6 33 0 W'oodford 37 1 9.0 23.0 Stateb.., 35.5 7.1 18.1 " No data reported for 1934. b Based on average annual yields for the state. 10 BULLETIN No. 610 [April, Table 4. — Average Wheat Yields" in Illinois Counties and Their Variation, 1927-1953 County Average yield in bushels per acre 1927-53 Standard error of estimate about trend 1927-53 Standard error in column 2 expressed as a per- cent of 1949-53 average yield County Average yield in bushels per acre 1927-53 Standard error of estimate about trend 1927-53 Standard error in column 2 expressed as a per- cent of 1949-53 average yield ^dams 18.3 3.1 12.8 Lee . . 24 5 4 1 14 7 \lexander. . . .. 15.8 3.4 18 9 Livingston 22 2 3 5 13 5 Bond . . 16.3 3.2 15 5 Logan 22 6 4 8 17 5 Boone .. 21.9 4.8 17.5 McDonough . 21.1 3.6 14.2 Brown .. 17.8 3.9 16 1 McHenry 23 3 4 7 16 8 Bureau . . 24.5 3.2 11.8 McLean . 22.6 3.7 13.8 3alhoun .... . . 19.1 3.7 16.2 Macon 22 7 4.3 15 4 "arroll . . 23.3 3.6 14.1 Macoupin . 18 3 4 5 19 4 3ass . . 20.6 3.9 14 9 Madison 18 3 3.7 17 6 Champaign . . .. 22.6 3.6 12.9 Marion . 14.5 3.1 19.1 Christian . .. 21.7 4.1 14 5 Marshall 21 9 4 0 14 4 ~lark . . 16.0 3.3 20 1 Mason 18 3 3 8 16 4 31ay. . .. 13.2 3.1 21.5 Massac . 14.9 2.5 13.9 Zlinton .. 16.9 4.2 22.3 Menard .... . 20.6 4.3 16 4 ~oles . . 19.9 3.3 13.4 Mercer . 21 8 3.4 15 9 3ook . . 22.9 4.2 16 3 Monroe 18 6 4.7 21 6 Zrawford . . 15.3 3.2 20 3 Montgomery 18 5 4 1 16 5 Cumberland . .. 16.0 3.7 19.5 Morgan .... . 21.7 4.3 15.6 DeKalb . . 24 4 5 2 17 6 Moultrie 21 1 4 0 15 4 DeWitt .. 21.9 4.0 14.9 Ogle .... . 22.8 4.5 17.3 Douglas . . . .. 21.7 4.3 15.8 Peoria . . 21 9 3.6 12 9 DuPage . . 24.3 5.0 18 1 Perry 13 3 3.5 21 6 Sdgar .... . . 20.7 3.1 13 0 Piatt 22 8 4.3 15 0 Edwards .... .. 15.9 4.1 23.3 Pike . 17.5 3.5 16.2 Effingham . . . .. 15.8 3.8 21.3 Pope . 13.9 2.8 16.5 Payette .. 15.0 3.2 18.4 Pulaski .... . 15.2 3.4 18.3 Ford . . 22.2 4.2 15.8 Putnam . . . 24.5 4.4 17.2 ^ranklin .... . . 14.7 3.4 20 7 Randolph 16 2 3.7 19 1 ^ulton . . 20.5 3.8 16 0 Richland 14 5 3.8 25 0 liallatin .... . . 16.2 3.9 20.5 Rock Island . . 23.5 4.5 20.1 jreene . . 18.7 4.0 17.4 St. Clair . 18.3 4.1 19.3 3rundyb. . . . . . 22.6 3.3 12.4 Saline . 15.5 3.0 17.2 Hamilton . . . . . 14.5 3.1 19.4 Sangamon . . . . 21.7 4.5 16.8 "lancock. . . . .. 19.7 3.5 14.2 Schuyler . 19.2 4.2 16.4 Htardin" . . 14.1 3.8 23 5 Scott . 19 4 3.9 17.0 lenderson . . . . 20.7 3.6 15.3 Shelby . 18.3 3.0 13.5 fienry . . 23.5 3.3 13.2 Stark . 23.4 3.8 12.8 roquois .... ., 22.6 3.8 13.6 Stephenson . . . 20.8 4.2 16.2 ] ackson .. 16.1 4.0 23.0 Tazewell . 21.5 3.8 15.1 asper . . 14.5 3.3 20.4 Union . ... . 16 3 3.9 20.7 efferson .... .. 14.6 4.0 25 3 Vermilion 21 6 3.9 14.9 ersey . . 19.0 4.2 19 8 Wabash . 16 7 3.8 28.8 o Daviess . . . . 20.3 4.3 18.4 Warren . 22.5 4.4 17.1 ohnson .... . . 13.9 3.2 19.3 Washington. . . 15.2 4.2 23.3 •Cane . . 25.1 4 9 16 9 Wayne 14 1 3.5 22.4 •Cankakee. . . .. 21.7 3.9 14.9 White . 14.9 3.8 22.6 Kendall . . 24.3 3.8 13.3 Whiteside 23.3 3.9 15.2 •Cnox . . 22.0 3.8 14.2 Will . 23.4 3.9 13.7 Lake .. 23.5 4.4 15.3 Williamson 14.1 3.1 18.5 LaSalle . . 23.0 4.8 17 0 Winnebago 21.6 4.1 15.9 ^awrence. . . .. 15.1 3.0 17 2 Wood ford 22.3 3.9 14.7 Stated . . 18.7 2.8 12.6 • 1927-1949 — Winter wheat only; 1950-1953 — All wheat. b No data reported for 1934. c No data reported for 1950. d Based on average annual yields for the state. 1957] VARIABILITY OF YIELDS AND INCOME FROM CROPS 11 Table 5. — Average Hay Yields in Illinois Counties and Their Variation, 1927-1953 Standard Standard Average yield in County tons Standard error of estimate about error in column 2 expressed as a per- Average yield in County tons Standard error of estimate about error in column 2 expressed as a per- per acre 1927-53 trend 1927-53 cent of 1949-53 per acre 1927-53 trend 1927-53 cent of 1949-53 average average yield yield Adams 1 35 218 13 9 Lee 1.55 139 7 1 Alexander. . . . 1.55 .234 14.3 Livingston .... 1.51 .211 12.3 Bond 1.19 .183 13.9 Logan 1.35 .173 12 2 Boone 1.79 .245 10.0 McDonough . . 1.39 .190 12.0 Brown 1.36 .222 14.3 McHenry 1.72 .239 11 1 Bureau 1 54 .150 8.3 McLean 1.52 .190 11 0 Calhoun 1 62 .237 12.6 Macon 1.37 .192 13 9 Carroll 1.56 .135 7.1 Macoupin .... 1.39 .175 11.2 Cass 1 35 207 14 4 Madison 1.57 .180 10 4 Champaign 1 47 198 12 4 Marion .84 055 5 9 Christian . . . 1.32 .186 13.2 Marshall 1.51 .205 11.5 Clark 1.15 .123 9.2 Mason 1.43 .210 12.4 Clay .80 .180 20.7 Massac 1.10 .184 14.8 Clinton 1 39 209 12.6 Menard 1.38 .178 11.9 Coles 1 32 173 12 4 Mercer 1.47 .161 9.5 Cook 1 49 186 9 9 Monroe .... 1.60 .271 14 9 Crawford .... 1.13 .161 12.6 Montgomery. . 1.29 .144 10.1 Cumberland . . 1.09 .139 11.0 Morgan 1.40 .209 14.4 DeKalb 1.60 .194 10.1 Moultrie 1.31 .174 12.9 DeWitt 1 50 .176 11.1 Ogle . 1.54 .180 9.5 Douglas 1 38 .268 17.0 Peoria 1.46 .179 10.8 DuPage 1 53 182 9.3 Perry 1.03 .243 21.9 Edgar 1 29 188 13.9 Piatt 1.40 .193 13.5 Edwards 1 01 178 16 2 Pike 1.50 .205 11.6 Effingham 1 05 142 11 6 Pope .97 .166 15.2 Fayette 1.02 .159 13.7 Pulaski 1.16 .168 13.3 Ford 1.44 .226 14.0 Putnam 1.55 .146 7.8 Franklin . ... .97 .193 18.6 Randolph .... 1.45 .245 15.6 Fulton 1 45 209 12.3 Richland .82 .167 18.6 Gallatin 1.18 .205 15.3 Rock Island . . 1.58 .128 6.1 Greene 1 51 180 10 8 St. Clair 1.60 .185 10.3 Grundy 1 46 210 11 9 Saline 1.07 .175 15.0 Hamilton .... .88 .197 20.1 Sangamon .... 1.38 .159 10.5 Hancock 1.32 .179 12.2 Schuyler 1.33 .237 16.5 Hardin 1.02 .228 21.5 Scott 1.56 .178 9.9 Henderson . . 1.47 .171 9.9 Shelby 1.21 .134 10.2 Henry 1.62 .144 7.4 Stark 1.48 .160 9.5 Iroquois . . 1.51 .222 13.7 Stephenson . . . 1.70 .240 10.9 Jackson 1.26 .171 11.2 Tazewell 1.57 .149 8.3 Tasoer. . .91 .135 13.0 Union 1.17 .208 16.4 Jefferson .... .87 .177 17.7 Vermilion . . . 1.38 .179 12.1 Tersev . 1.65 .189 9.9 Wabash 1.27 .195 17.9 Jo Daviess . . 1.63 .235 11.6 Warren . ... 1.40 .179 11.6 Johnson .96 .169 16.7 Washington. . . 1.15 .181 13.4 Kane . . . 1 68 .193 9.5 Wayne .80 .186 20.9 Kankakee. . 1 39 183 11.2 White 1.09 .187 15.2 Kendall 1.52 .178 10.1 Whiteside .... 1.62 .192 9.5 Knox . 1 48 .171 9 6 Will 1.47 .189 10.7 Lake 1.63 .250 12.1 Williamson . . . 1.00 .186 16.9 LaSalle 1.56 .163 8.7 Winnebago . . . 1.65 .171 8.1 Lawrence .... 1.09 .162 14.5 Wood ford .... 1.61 .214 11.1 State8.. 1.36 .120 7.3 a Based on average annual yields for the state. 12 BULLETIN No. 610 (April, five crops studied. For example, in Clinton county during the period 1949-1953, of the land devoted to the five crops, corn represented 27.43 percent; wheat, 24.39 percent; soybeans, 21.97 percent; oats, 13.90 per- cent and hay, 12.31 percent. The second step was to multiply these percentages by their respec- tive yield variabilities (Col. 3, Tables 1-5). Thus (still using Clinton county as an example), we multiplied 27.43% by 26.5 (weight for corn X Col. 3 of Table 1) = 7.27, 21.97% X 19.7 = 4.33 for soybeans, etc. Finally these weighted yield variabilities for each crop are added (7.27 -f- 4.33, etc.) to get a county average yield variability — in the case of Clinton county, 23.30. A general pattern of increasing yield variability occurs as we move from the northern part of the state to the southern part (Fig. 2). Coun- ties in northwestern Illinois are characterized by high yield stability while in the counties in southern Illinois (excluding the extreme southern tip of the state) a higher degree of variability is noted. 1900% AND OVER Average crop-yield variability. (Fig. 2) 1957] VARIABILITY OF YIELDS AND INCOME FROM CROPS 13 Following is the ranking of counties in order of decreasing variability: Rank County Average crop yield variability 1 Clinton 23.30 2 Washington 22.56 3 Coles 22.43 4 Wabash 22.42 5 Perry 22.27 6 Hardin 21.49 7 Randolph 21.30 8 Clay 21.09 9 Brown 20.65 10 Jefferson 20.58 11 Richland 20.35 12 Williamson 20.24 13 Monroe 20.16 14 Marion 20.05 15 Franklin 19.95 16 Edwards 19.83 17 Wayne 19.53 18 Hamilton 19.06 19 Schuyler 18.95 20 Bond 18.90 21 Jackson 18.77 22 White 18.76 23 Johnson 18.72 24 Fayette 18.66 25 Hancock 18.47 26 St. Clair 18.44 27 Union 18.43 28 Pike 18.35 29 McDonough 18.20 30 Gallatin 18.10 31 Jersey 18.10 32 Livingston 17.87 33 Adams 17.83 34 Calhoun 17.76 35 Massac 17.66 36 Scott 17.53 37 Fulton 17.31 38 Saline 17.16 39 Madison 16.95 40 Peoria 16.94 41 Pope 16.82 42 Grundy 16.79 43 Mason 16.79 44 Ford 16.78 45 Greene 16.76 46 Alexander 16. 70 47 Pulaski 16.47 48 Effingham 16.45 49 Kendall 16.42 50 Moultrie 16.32 51 Will.. 16.31 Rank County Average crop yield variability 52 Lawrence 16. 25 53 Stark 16.25 54 Warren 16.15 55 Iroquois 16. 11 56 Jasper 16.03 57 Macon 16.03 58 Cook 15.90 59 LaSalle 15.89 60 Marshall 15.86 61 DeWitt 15.75 62 Crawford 15.69 63 Logan 15.57 64 Cass 15.44 65 Knox 15.44 66 Shelby 15.43 67 McLean 15.37 68 Morgan 15.35 69 Cumberland 15.25 70 Kankakee 15.21 71 Christian 15.20 72 Menard. 15.15 73 Champaign 15. 13 74 Mercer 15.09 75 Putnam 15.07 76 Henderson 15.05 77 Piatt 15.00 78 Sangamon 15.00 79 Montgomery 14.85 80 Douglas 14.68 81 Lake 14.59 82 Macoupin 14.43 83 Edgar 13.99 84 Vermilion 13 . 99 85 DuPage 13.84 86 Tazewell 13.83 87 McHenry 13.81 88 Henry 13.51 89 Jo Daviess 13.40 90 Boone 13.15 91 Kane 13.02 92 DeKalb.. ... 12.95 93 Clark 12.94 94 Stephenson 12. 85 95 Ogle 12.73 96 Bureau 12.63 97 Rock Island 12.33 98 Whiteside 12.13 99 Winnebago 1 1 . 86 100 Lee 11.61 101 Woodford 11.38 102 Carroll.. 10.62 The relative variability of crops within any county may be com- pared by using Column 3 of Tables 1-5. 14 BULLETIN No. 610 [April, A comparison of the relative variability of crop yields over the state may be obtained from the state data given in the last line of Tables 1 through 5. Using these state averages we find that oats have the most variable yields; corn is second; wheat, third; soybeans, fourth; and hay the most stable. Part II — EFFECT OF CROP DIVERSIFICATION ON FARM INCOME AND INCOME VARIABILITY In Part I our primary purpose was the comparison of counties with respect to crop yield variabilities. To make such a comparison meaningful, yield variabilities were expressed as percentages of an average yield (standard error of estimate of yield per acre divided by average yield per acre, 1949-1953). In Part II, however, interest is in the effect of crop diversification on (a) average level of income per acre, and (b) variability of income per acre in a particular county. Since we do not attempt to compare counties in this analysis, the measure of variability is expressed in actual dollars per acre and not as a percent of the average level of income per acre for any period. In considering the income1 and income variability effects of diversi- fication, two pairs of crops are studied. The first of these is corn and soybeans, frequent competitors for the acreage allotted to cultivated crops. The following analysis shows the effect on income variability of dividing an acreage in different proportions between these two crops. The choice of a small-grain crop usually lies between oats and wheat. Accordingly, the effect of diversification upon year-to-year income variability of these crops is also compared. Gross income is used because both crops considered within a class (cultivated or small grain) require approximately the same tillage and harvesting operations. Seed and fertilizer costs may vary slightly between crops within a class but it is not believed that omission of these costs along with other operating costs will alter the conclusions of the analysis. Appropriate cost-of-production data are not available for a time period of sufficient length to display the variability which is our focus of attention in this study.2 1 Prices used to compute gross incomes are those reported by the Cooperative Crop Reporting Service. Prices for Crop Reporting Districts were used for counties within that district. 2 Although cost-of-production studies have been conducted by the Illinois Agricultural Experiment Station since 1913, the period of time the study has been located in any one area of the state, almost without exception, has been quite limited. 1957} VARIABILITY OF YIELDS AND INCOME FROM CROPS 15 The applicability of the results of the following analysis based on county yield data to any particular farm within a county depends, of course, on the similarity between conditions on that farm and the average of the county. Corn and soybeans. What has been the relation between income variability and diversification between corn and soybeans? Using the INCOME VARIABILITY 15 ui £ 14 tc. LJ 0. OT 5.3 12 u. O g