User Login    
 + Register
News : Farmers Brace For High Corn Yields, Lower Prices
Posted by Randy on 2014/7/28 4:11:10 (256 reads) News by the same author

(semissourian.com) - Despite expecting a 10 percent increase in corn yields this growing season, Dan Jennings said decreased corn prices and other factors are cutting into profits.
Click to see original Image in a new window

"It's going to be really tough to make money this year," he said.

Jennings farms about 5,300 acres -- 1,800 of which are used for corn -- in the Sikeston, Missouri, area.

2014 could see diminished returns for Southeast Missouri corn farmers even as average temperatures and substantial amounts of rain fuel potentially high yields, experts are saying.

"The crop looks great," said Michael Aide, chairman of the department of agriculture at Southeast Missouri State University. "The acreage is good. Everybody is just waiting to see what prices the market will bring."

Edward Dement of Dement Farms in Sikeston said he has already presold some of his corn crop for the September harvest.
"It's going to be a very big corn yield year," he said.

Climate

Part of the added corn production may be explained by a large increase in rainfall. Rainfall patterns in the United States can be shifted by the El Nino weather system, which is an "anomalous warming of sea surface temperatures in the Pacific," said Bohumil Svoma, professor of atmospheric science at the University of Missouri.

From April to June, Southeast Missouri saw near average temperatures and about 20 inches of rain, which is 50 percent above average rainfall for that period, Svoma said.

For the next three months, there is an equal chance of temperatures and rainfall being above or below normal expected measures for Southeast Missouri, he added.

However, Svoma said he believes that Southeast Missouri will be average, but "leaning toward cooler and wetter." However, it is likely that rainfall "won't be as above normal as it is now," he said.

Prices and input costs

As of Monday, the Chicago Board of Trade listed corn at $3.72 per bushel, which is about a 32 percent decrease from the same time last year, according to CNN Money.

"We're looking at harvest prices that are going to be 60 percent of what they were a year ago," said Dave Danker, president of the agriculture division at Buchheit stores.

Jennings, the Sikeston farmer, said he plans to put about 40 percent of his corn crop into storage and has already sold the rest. After Jan. 1, corn prices are usually about 40 cents a bushel higher than they are around September at harvest time.
David Reinbott of the University of Missouri Scott County Extension in Benton said input costs this year are similar to last year.

Although nitrogen is slightly less expensive this year and other forms of fertilizer "might have been down a bit," that has been offset by rising seed prices, caused by increased demand from South America and China, Reinbott said.

Aide said that because of seed, fuel, scouting, land and fertilizer, many farmers have a cost close to the market value per bushel in producing their corn.

"Profit margins are going to be razor thin," Aide said. "We're getting half of what we got a bushel from two years ago."

Although yields in the Missouri Bootheel are usually favorable, "which will help compensate to a point," if current price trends continue, the region is probably looking at a "reduction in farm income," Aide said.

Shipping

Shipping also might prove to be difficult and expensive this season for area farmers. Danker said barge availability is an issue from recent floods disturbing barge distribution along the Mississippi River.

The barge market has adjusted accordingly, with sellers on the Ohio and Mississippi rivers increasing shipping rates by 15 percent to 75 percent as of mid-July and withdrawing quotes for late September through December.

The Bakken Shale deposit oil boom in North Dakota and Montana is causing railroad shipping issues that will affect Southeast Missouri farmers as well, Danker said.

"It's a freight location problem," Danker said. "The oil boys are tying up a big part of the rail freight. There's more demand for rail service than we've got trains and crews to make it happen."

Printer Friendly Page Send this Story to a Friend Create a PDF from the article


Other articles
2015/7/31 6:50:00 - Chillicothe To Receive New 79 Room Hotel
2015/7/31 6:40:00 - Rabbit, Poultry And Dairy Show Results From NCM Fair
2015/7/31 4:53:31 - Wheat Yields Good In MU Variety Tests
2015/7/31 4:48:25 - Carthage Couple To Stand Trial In Abuse Of 1-Month-Old Baby
2015/7/31 4:39:49 - Feds: Man's Own Security System Caught Him Dealing Drugs
2015/7/31 4:35:24 - Woman Rushes To Ailing Mom's Side, Leaves 4 Young Children Home Alone
2015/7/31 4:26:49 - Harrison County Man Arrested For Abuse After Child Found On Highway
2015/7/31 4:21:54 - "Exorcism" At Public Park Caught On Camera
2015/7/31 4:18:14 - Woman Accused Of Getting 13-Year-Old Drunk, Raping Him
2015/7/31 4:09:51 - Country Showdown Begins At 7:30 Tonight At NCM Fair
2015/7/31 4:03:01 - Livingston County Sheriff Hires New Deputy
2015/7/31 3:59:24 - Chillicothe Police Department Blotter
2015/7/31 3:57:05 - Chillicothe Police Department To Hold Softball Event
2015/7/30 14:21:48 - Endangered Person Advisory Issued For Missing Princeton Girl
2015/7/30 7:54:33 - Circuit Court In Trenton Sees A Variety Of Cases
2015/7/30 6:46:10 - Northwest Missouri Man Injured In Tuesday Night Accident
2015/7/30 6:40:44 - Two Trenton Residents Injured In Schuyler County Accident
2015/7/30 6:30:00 - Trenton Man Charged With Domestic Assault
2015/7/30 6:26:05 - Iowa Man Injured In Accident South Of Eagleville
2015/7/30 5:58:21 - Swine And Goat Show Results From North Central Missouri Fair
2015/7/30 4:29:28 - Facebook Scam Preyed On Grieving "Angel Mom"
2015/7/30 4:22:43 - Police: Inmate Assaults Missouri Corrections Officers In Escape Attempt
2015/7/30 4:17:44 - Effort Starts To Fight Kansas City's New Minimum Wage Law
2015/7/30 4:12:22 - J. C. Penney Employee: Boss Confronted Her Over Shorts She Bought At Same Store
2015/7/30 4:10:00 - Mother Charged After Toddler Found Unresponsive In Home Filled With Dead And Dying Animals
2015/7/30 3:56:29 - 4 Charged By Police With Burglary At Gallatin
2015/7/29 8:43:48 - Team Farmer Event At North Central Missouri Fair Canceled
2015/7/29 8:39:02 - Gallatin City Council Meets
2015/7/29 8:36:01 - Gallatin Man Arrested On Multiple Counts Of Child Porn
2015/7/29 6:39:38 - Habitat For Humanity To Hold Meeting At Chillicothe



Bookmark this article at these sites

                   

Listen to KTTN-FM