Economics of Crop Production Over the Next Two to Three Years.

0.5 CM CEU

Register Now: http://agronomy.peachnewmedia.com/store/seminar/seminar.php?seminar=80718

The period between 2008 through 2013 likely will be remembered as a golden age in agricultural incomes.  Use of corn in ethanol along with strong export lead to an increase in commodity prices, particularly corn, soybeans, and wheat.  These prices reached high levels in 2010 through 2012 as short crop around the world.  Corresponding with rising prices were increases in non-land costs – particularly fertilizer, seed, chemicals, and machinery deprecation – along with cash rents.  While these costs increases, revenues were high because of high prices, leading to record levels of farm incomes. 

 

Prices fell in 2013 as a result of good crops around the world.   While prices fell leading to lower revenues, costs have come down much more slowly.  In many cases, farmers faced losses.  However, farmers had built financial reserves from 2010 through 2012, and these reserves were used to cover losses.

 

In 2016, prospects are for very large levels of crop production in corn, soybeans, and wheat, leading to further reductions in prices.  As a result, farmers will face losses until prices rise again.  The most likely factor leading to price increases will be a short crop in a major crop producing region of the world.  It is impossible to predict when this might occur.   Farmers will face more difficulties as financial reserves become limited and many farmers will face no alternative but to cut costs.

 

See more from this Division: ASA Section: Agronomic Production Systems
See more from this Session: Symposium--Crop Management as related to CCA specialty certification exam prep

Previous Abstract | Next Abstract >>