What is in this article?:
- Georgia growers eye plump 2011 crop prices
- Other commodities
The simple reasons why cotton prices skyrocketed are because:
• World cotton acreage decreased over the last three years, reducing production.
• There is uncertainty in the status of the 2010 crops in China, India and Pakistan.
• Economic recovery has increased global demand for cotton-made items.
Farmers are harvesting soybeans and peanuts now, too. Corn harvest ended during summer. Prices for these other major Georgia commodities are looking good next year. Such an across-the-board outlook is rare, said Nathan Smith, a UGA Extension agricultural economist.
Georgia and other Southeastern farmers can produce a wide range of crops, unlike Midwest farmers who typically grow only one or two crops in a year. Georgia farmers can decide more freely what and how much they plant, he said.
“This year is looking at competition between the major crops grown in Georgia, in terms of peanuts, corn, soybean and cotton, where all the prices are going to be higher than they’ve been in the last two seasons,” Smith said.
Peanut prices next year may reach $500 per ton, $50 more per ton than this year. Corn could jump as high as $5.25 a bushel, $1 per bushel more than this year. Soybeans could reach $11 per bushel, $2 per bushel more than this year, he said.
Though prices next year look good, the cost to make the crops doesn’t, Smith said. Energy prices will climb. Seed costs will be higher. Fertilizer will be 10 percent to 15 percent higher next year, too. And weather, as is always the case, must cooperate to make a crop.