FarmPolicy

November 14, 2018

Ag Economy; and, Policy Issues

Agricultural Economy

AP writer David Pitt reported on Friday that, “A mild summer across much of the nation’s heartland has provided optimum growing conditions for the nation’s corn and soybean crops. Pair that with high-yield seeds and other new farming technologies, and the U.S. is looking at busting records come harvest time.

“The U.S. Department of Agriculture already has predicted a record soybean crop of 3.8 billion bushels. And the corn crop, it said in July, would be large but not bigger than last year’s record of 13.9 billion bushels. However, many market analysts and some farmers expect the USDA to revise expectations upward in a report based on field surveys that’s due out Tuesday.”

The article noted that, “‘Illinois has largely been dealt to date pretty close to a royal flush on weather and I’m sure that the yields are going to be very high here,’ said Scott Irwin, a University of Illinois professor of agricultural and consumer economics.

The expected large harvest has driven corn and soybean prices significantly lower, but it isn’t expected to make much of a short-time difference in consumer food prices. However, since the grains are staples in livestock feed, lower prices could eventually lead to a decline in the cost of beef, pork, chicken and milk.”

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