Record Indiana Corn Crop Plays Role in Moderation of Crop Prices
Economists expect moderate national crop prices thanks to an abundant corn crop and average soybean yields
A recent AgriNews article shows Indiana has reached a record high corn yield this year at 174 bushels per acre, while surpassing 1 billion bushels of corn for the first time ever, contributing to expected moderation in national crop prices.
Indiana’s 1 billion bushels of corn have largely contributed to the national total of 14 billion. This combination of high corn yields paired with average soybean yields have led Purdue University agricultural economist Chris Hurt to believe crop prices as a whole will be moderate. Hurt says in a recent Purdue Exponent article, “Overall this is a very good production year for Indiana crop farmers. However, prices, total revenue and incomes for grain producers will be lower than last year.”
Last year, corn producers were receiving $7 a bushel for their crop, compared to $4.60 this year. Similarly, soybean producers were getting an average of $14.50 per bushel, down to about $12.25 this year. The decline in prices is not all bad news for farmers according to Hurt. “We have something we haven’t seen now since about 2006, and that is plenty of corn. The supply, the ability to produce corn, has caught up to demand.” Hurt believes the plethora of corn this year has led to a valuable lesson for farmers looking forward to 2014, as he suggests planting less corn and more soybeans.
For the first time since 2006, economists believe enough corn has been brought in to supply the demand. As a result, overall crop prices have become moderate and farmers in 2014 may look to plant less corn with more of a focus on soybean production.