Rushville Republican

Agriculture

November 15, 2013

Corn crops expected to set record, but not as large as anticipated

(Continued)

USDA projected national soybean production to reach 3.26 billion bushels, which would represent the third-largest crop on record.

The national average price received for 2013 soybeans is estimated to be $12.15, compared with $14.40 for the 2012 crop. According to Hurt, soybeans could offer some income stabilization for crop farmers.

“We haven’t seen the same erosion in soybean prices that we have in corn because of the strong demand from China and tight world supplies until the South American crop comes into the markets later this winter,” he said. “Soybeans could be a stabilizing influence in farm incomes.

“It’s never just about the size of the crop but what buyers you have and at what price they will pay for it.”

The overall large corn and soybean crops will be welcome news to end users, such as processors and livestock producers, and ultimately food and fuel consumers.

With grain more readily available and at lower prices, food price inflation should fall below the general rate of inflation. For the last two years, food price inflation has been higher than general inflation.

Indiana farmers are following the national trend with projected record corn production at more than 1 billion bushels for the first time. At 174 bushels per acre, the state’s farmers also are expected to break the record for yield. The record of 171 bushels per acre was set in 2009. This compares with a national per-acre corn-yield average of 160.4 bushels, which Hurt said would be a fairly normal yield.

The state’s soybean farmers are expected to produce an estimated 2.6 million bushels on yields of 50 bushels per acre. That would tie per-acre yields from 2006 and fall just short of the record 51.5 bushels per acre in 2004. These yields compare with 43 bushels per acre nationally, which Hurt said also is close to normal expectations.

The full report can be downloaded from the USDA-NASS website at http://www.nass.usda.gov.

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