What is in this article?:
• Lowered expectations are due to heavy spring rain in parts of the country that prevented some acres from being planted.
• The overall large corn and soybean crops will be welcome news to end users, such as grain processors and livestock producers, and ultimately food and fuel consumers.
Good news for farm income
bushels, up nearly 1 billion bushels from the record set in 2007.
While a record, Purdue Extension agricultural economist Chris Hurt and Ohio State University Extension economist Matt Roberts said production won't be as high as some expected, which is good news for farm incomes.
USDA lowered harvested corn acres by nearly 1.9 million acres and soybeans by about 700,000 acres, primarily because of land that did not get planted due to excessive spring rains.
"There was a lot of fear coming into this report that the corn crop would be so large prices would be extremely low," Hurt said. "But while yields were up substantially, prevented planting acres offset some of that."
Roberts agreed, calling the report "mildly bullish" and noting that "the combination of higher yields and acreage cuts have left the total corn harvest where the market expected it to be."
Another positive for farmers is that USDA recognized the growing demand for the nation's corn and soybean crops from both export buyers, such as China, and domestic buyers, such as livestock producers.
"What we saw was demand with lower prices over the last four to six weeks has increased consumption of U.S. corn," Roberts said. "Export sales have increased, and the net result is that there's only a very small increase in ending inventory.