For farmers who grow some of the biggest U.S. crops, choosing what to plant this year has become a bet on which one will lose less money.
A three-year plunge in prices has sent farm income to the lowest in more than a decade and left parts of the Midwest agricultural economy in recession. While growers probably would lose $70 on every acre of corn or soybeans they sow -- the most since 1999 -- those crops offer the best chance at profit if yields are better than average, according to AgResource Co. So, even with record global surpluses, U.S. farmers are preparing to plant more corn and soybeans in 2016 and devote less land to wheat, a Bloomberg survey showed.
“Nothing looks very good,” Terry Vinduska, 65, said by telephone from his 3,500-acre (1,416-hectare) farm in central Kansas, the biggest wheat-growing state. Vinduska, who runs the farm with his son-in-law and younger man’s father, plans to expand corn planting by 10 percent and soybeans by 5 percent on land he normally uses for wheat.
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2 comments:
There is a very simple solution. Considering the price of beef is through the roof, why not convert some acreage into pasture and grow cows. More cows, better beef prices in the store. Less corn/wheat, better prices for farmers.
On another note, a proactive foreign balance of trade president, say Donald Trump for instance, could limit imports to support domestic prices, thereby eliminating the need for taxpayer subsidies to American farmers.
A three-year plunge in prices ??? My Dear. Why isn't this reflected at the market? Prices continue to rise.
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