8 March 27, 2014 2014 LOGAN COUNTY FARM OUTLOOK MAGAZINE LINCOLN DAILY NEWS.com
Continued to page 10
Corn: When a good harvest may not be so good
F
or the last few years, farmers in Illinois have
enjoyed above-average returns on their corn
crop. Years prior to the harvest of 2013 were
influenced by high demand for a higher-quality
crop, which was harder to find after the 2012
drought.
According to John Fulton, county director for
University of Illinois Extension, there were likely
several factors that went into the price changes
prior to 2006.
“Use in fuel blends (ethanol and biodiesel), food
products, exports and domestic livestock feeds are
the large consumption areas,” Fulton said. “The
export markets are usually only two or three years
in length, and the last boom was in the late ’70s,
and the steep price decline led to significantly
smaller incomes for producers.”
Beginning in late 2006, crop prices entered
what some called a “new era” of higher values,
partially due to the increased demand for crops
in the production of ethanol and other similar
biofuels. Fulton says that the fuel blending led to an
increased use of domestic crops by U.S. producers,
whereas past years saw a greater trend in exporting
crops.
After the growing season of 2013, many farmers
were happy to find a much larger yield than they
had in the past. Last summer, projected corn prices
hovered at around $7 a bushel. By all accounts,
there was the potential for a great profit this year.
As 2013 moved forward, the projected price of corn
dropped considerably. As of February this year, corn
prices in Illinois have been hovering somewhere
between $4 and $4.50, depending on where you look.
The question that has arisen for farmers now is this:
How do I recover? What do I do now? The answer given
by agricultural experts is to try to break even this year.
According to Gary Schnitkey of the University of
Illinois Agricultural Department, cash grain bids for
2013 fall delivery are $4.40 per bushel. This is below
the projected 2013 break-even level of $4.65 per
bushel. Cash bids for 2014 fall delivery are near $4.35
per bushel, near the $4.31 level needed to break even.
However, the potential for low prices to continue over
the next few years could lead to losses.
