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Corn farmers could be in for their worst year in close to two decades, economists say, as the Federal Reserve reports that crop prices remain “unprofitably low” in its latest assessment of economic conditions.
Last week’s Federal Reserve Beige Book largely “confirmed things we were already thinking,” Michael Langemeir, a professor of agricultural economics at Purdue University, told Agriculture Dive, with dismal crop prices standing in stark contrast to the strong livestock sector. “This is one of the worst years for corn and sorghum prices since the ethanol boom began in 2007”, says Langemeier.
High input costs following COVID-19 have created more of a difficult environment for row croppers, though the decline in crop prices has provided a boon to the livestock industry by lowering feed costs.
(From the National Association of Farm Broadcasters)