Too much of a good thing
By Traci Moyer, The Herald Bulletin, Anderson, Ind. | |
McClatchy-Tribune Information Services |
Early predictions indicate this harvest will be one for the record books, but farmers are casting a cautious eye to the skies and preparing for the worst.
"Farmers have learned long ago not to count anything until it can be turned into cash," said
Per acre, the average yields and production for both corn and soybeans are up across the nation, according to a report by the
An estimated 1.04 billion bushels of corn is expected to hit the markets this year if both the growing and harvesting conditions continue to be favorable in
While not the largest yield for the state, soybeans are also expected to reach 279.9 million bushels this year up from the 264.7 million bushels harvested last year. A record 3.82 billion bushels is estimated for this year's national soybean harvest overshadowing last year's 3.29 billion bushels.
Howell, who has farmed the family's
"We still need some more rain," he said. "Soybeans depend on the August rains."
Spotty showers created isolated dry spots in the fields and others were drowned out, but overall
Barring an early frost or wet conditions, this year looks like another bumper crop.
But farming is not easy.
"Fertilizer costs have gone up considerably and the only way to offset that is to have a bigger yield," Ousley said. "And you hope to have a high yield to get a good price."
"It is still a challenge to run a farming operation,"
About 72 percent of
About 84 million soybean acres in the state are rated 76 percent good to average compared to a 70 percent national average, she said. Mild weather conditions combined with high yields is also creating a surplus, driving crop prices down.
This could trigger government payouts, Sprouse said.
"We are predicting corn might be around
Corn prices have not dropped below
Crop insurance and a new government program called an Agricultural Risk Coverage-County Option, or ARC-CO may help farmers facing financial hardship from the plummeting crop prices, Sprouse said.
"There are going to be big changes ahead," she said. "In planning for the future it looks like this will become more of a standard. We do not expect prices to go back to
"This winter and fall it is going to be important for farmers to reevaluate their business plans."
Howell said with a record harvest, inventories will build across the country and carryover is an opportunity for price run-ups. Cheap crop prices, however, are not always bad news as they can create an increase in livestock production, he said.
And high prices for corn and soybeans can "kill a market."
"It's the system we operate under," he said. "It will shake out, but it will take a couple of years."
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