High USDA Corn Yield Predictions Cut Cost Per Bushel & Increase Demand
USDA predicts 2013 corn crop yields to be three times higher than 2012
The USDA’s prediction for 2013 corn supply has reached 14.9 billion bushels, three times more than last year, due to a combination of high planting rates and hospitable weather conditions. This record corn crop is expected to reduce the cost per bushel for consumers and increase supply demand on farmers.
An article from Southeast Farm Press highlighted the findings of the USDA World Agriculture Supply and Demand Estimates, which reported that despite the slow start to this year’s planting season, corn yields will be on track to produce a record 14.9 billion bushels. This significant increase in corn yields has reduced the cost per bushel to $4.30-5.10, down from $6.70-7.10 in 2012. The drop in price is unlikely to negatively affect finances for farmers as the USDA expects the U.S. to export approximately 550 million more bushels of corn than last year.
National Corn Growers Association President Pam Johnson was quoted in the article saying, “As farmers, we take great pride in our work and feel these projections recognize our efforts. At the same time, our optimism is tinged with caution as we have all seen conditions change quickly and a crop shift course in a few short weeks. We remain diligent in our work, striving to produce that abundance for a world with constantly increasing food, feed and fuel needs.”
The need for corn as food and fuel across the globe places strong supply demand on farmers to produce ample and quality crop. Thanks to increased planting rates and the weather conditions of this spring, farmers will likely meet this need and surpass the corn yields of 2012.