Could good harvest bring in less money?

Corn crop concern
Aaron Krause
Aug 15, 2014

 

Farmers in parts of the Midwest are fearful they will experience their first losses in years due to a record corn crop and resulting decrease in prices.

But Ohio farmers don't have to be concerned, said Mike Gastier, an extension educator with OSU Extension, Huron County.

Gastier said in this area, the corn crop is "not spectacular by any stretch." It was planted two to three weeks later than farmers would've liked due to a wet spring and cool summer.

"In Ohio, we will not have a record crop," Gastier said, adding his guess is it will be "close to average."

And if an early frost sets in, it could "put the crop in jeopardy," Gastier said.

Gastier said typically, Iowa and Illinois set the tone for the crop's size. If farmers in those states yield huge crops, typically there will be a large one nationally, Gastier said. Right now, the crop "looks very good in those states" the extension educator said. He added those states are the largest two producers of corn in the country.

But farmers won't know if it's a record crop until it's harvested, the educator said.

Supply and demand affect prices, and the fact the market is anticipating the largest corn crop ever is driving prices down.

The Wall Street Journal reported corn prices have plummeted about 30 percent in the past three months to their lowest point since 2010 "as near perfect weather in the Midwest fuels expectations of a second consecutive bumper harvest."

Gastier said those in the agriculture industry are anticipating more than 14 billion bushels of corn nationally. They've been in the 13 billion range before, he added.