TIFTON, Ga.— Crop mixes, equipment needs and land prices are just a few of the differences between agriculture in the Southeast and the Midwest region. One of the main differences can be noted nationwide as Georgia is known for growing the most peanuts in the U.S. while Iowa ranks first in corn and soybean production according to 2005 data from the U.S. Department of Agriculture National Agricultural Statistics Service (USDA-NASS). However, family farmers in both areas are affected by increasing costs of fuel and fertilizer and will be affected by decisions made for future government programs.

Farms across the Southeast have a greater variety of crop mixes in their farming operation than farms in the Midwest that primarily grow corn and soybeans. The National Center for Peanut Competitiveness gathers production information from representative farms across the Southeast. Data compiled from 12 farms across the Southeast show the diversity of crops grown including peanuts, cotton, corn, vegetables, watermelon, soybeans, wheat and coastal hay. Southeastern representative farmers also raise cattle in their farming operation.

The differences in crop mixes call for a difference in equipment needs across the two regions. Farmers in the Midwest can rely on a combine that normally costs $200,000 and can add an eight-row corn head to the combine for $45,000 and add a 30-foot grain table to the combine for an additional $30,000.

Farmers in the Southeast have more specific equipment needs if they grow peanuts and cotton. Southeastern peanut farmers utilize an 8-row peanut inverter that can cost approximately $33,000 and a self propelled peanut combine with an average price of $275,000. Farmers that also grow cotton may use a 6-row cotton combine which costs approximately $335,000, a module builder at $35,000 and a cotton buggy that costs $25,000.

All of these equipment needs include harvest equipment and do not take into account differences in planting equipment. All of these differences in equipment need double the costs of what Southeastern farmers require to produce their crop when compared to Midwest farmers.

Another difference in farming focuses on the increasing price of farmland between the two regions. According to the USDA-NASS survey cropland and pasture values rose by 13 and 22 percent, respectively, since January 1, 2005. Cropland values averaged $2,390 per acre and pasture values averaged $1,000 per acre on January 1, 2006, compared with $2,110 and $820 per acre, respectively, a year earlier.

The increase in farm real estate values continues to be driven by a combination of mostly nonagricultural factors, including relatively low interest rates and strong demand for nonagricultural land uses. Demand for farm real estate as an investment continues to be a strong market influence.

The Southeast region had the highest average increase in cropland value, at $4,550, up $890 per acre. In the Corn Belt region cropland values rose 12 percent to $3,230 per acre.

“Even with these differences in agriculture all U.S. farmers have concerns with the upcoming farm bill discussions and the rising costs of fuel and fertilizer,” says Don Koehler, Georgia Peanut Commission’s executive director. “The data collected from the representative farms will enable the commission to accurately represent Georgia’s farmers during upcoming 2007 Farm Bill debates.