Corn production in Ukraine has been rising for already 10 years. The gross yield of this cereal has grown from 3.6 million tons in 2001 to a record of 22.5 million tons in 2011. However, Ukrainian farmers aren’t going to rest on their laurels, but to increase the areas under corn for yield 2012. According to estimates of Association “Ukrainian Agribusiness Club” (UCAB) the areas under corn for yield 2012 could be expanded up to 4,5 mln ha (+25% of the areas in 2011), gross yield could become 25 mln tons.

“High profitability of corn stimulates the farmers for expansion of areas under this crop. For the last 5 years the profitability of corn has come to 25% on average, whereas its indicator for corn and barley has been rated at the level of 10-15%”, - says Roman Slaston, Coordinator of the project “AgriEfficiency”.

However, high profitability of corn in 2012 is up in the air because of increase in cost of agricultural resources, which could be smooth over only by efficiency growth.
That’s why efficiency of corn production will one of the key topics on InterAgro-2012 in the frameworks of the workshop “Corn – “commercial bread” of 2012?”, which will be conducted on the 8th of February 2012.

According to experts of UCAB, unexpected production “boom” entailed decided deficit on the market of corn seeds. As a result, prices for high-quality hybrid corn seeds of foreign selection has risen up to 40%, 170$ for corn unit. Such price rise for seeds will entail the increase in corn prime cost of the yield 2012 for 70-80 UAH/t.

Nevertheless, good crop capacity of corn makes it the least sensitive among grain crops to administrative rise of land rent for 75,6%, which came into force from the 1st of January 2012 in accordance with the Decree of CMU № 1185. As a result of this Decree’s implementation an average land rent will increase from 350 UAH/ha to 615 UAH/ha. “The additional rent payment for wheat and barley will be 100 UAH/t, while for corn only 50 UAH/t. The difference is substantial because of intensity”, - comments Roman Slaston.