Drop in Corn and Soybean Prices; Agricultural Production Up.
Grain farmers should brace for a drop in net incomes this year as the prices for corn, soybeans and wheat have fallen significantly from recent years, according to the American Farm Bureau Federation.
The latest Agricultural Prices report by the National Agricultural Statistics Service, indicated the index of prices received for crop production was down 11 percentage points from the same time last year, while the prices-paid index was unchanged. The situation for corn and soybeans is even more telling, with corn prices down by more than 20 percent from last year and soybeans off nearly a third.
“Farmers will be tightening up and planning carefully to help control their costs,” said Bob Young, chief economist for AFBF.
U.S. farmers spent $397.6 billion on agricultural production in 2014, up 8.3 percent from 2013, the largest increase since 2008, according to the Farm Production Expenditures report, published today by the U.S. Department of Agriculture’s National Agricultural Statistics Service