A recent poll by The Progressive Farmer showed that farmers are more optimistic than they were in August of last year, but the strong optimism that started at the beginning of the year is beginning to fade. Pat Westhoff with the University of Missouri’s Food and Agriculture Policy Research Institute says there’s so much corn and soybeans worldwide that prices are pushed lower and lower, making basis numbers that are unprofitable.
These are clearly lean times and Westhoff says producers are going to have to keep their production costs as low as they can. He says for producers who rent farmland, there may be some tough decisions ahead.
According to FAPRI’s August Baseline Report, price recovery for corn won’t be seen until 2022-23. There could be a reduction in soybean acres planted in 2018, and that could allow for a modest increase in soybean prices.
FAPRI Director Pat Westhoff was our guest Monday afternoon on Ag Insight: