Wednesday, November 05, 2014
Record grain crops could lead to lower prices and force more farmers to store corn and soybeans
The U.S. Department of Agriculture expects farmers to haul in 4 billion bushels of soybeans and 14.5 billion bushels of corn this harvest, Gerlock writes. Farmer Gene Trausch told Gerlock, "We out-produced ourselves. You always hope your neighbor burns up, hails out, whatever, dries up, but you have a good crop. You know, that's just the way it works. But everybody had a good crop this year."
That could lead to the lowest prices in five years, Gerlock writes. Add in rail delays, blamed on increased shipments of oil and last year's bad winter, and farmers will need to store grains. That creates a new set of problems because farmers who lack enough storage space are forced to store grain on the ground, risking its spoiling.
Trausch said many farmers are being forced to tighten their belts and save money, Gerlock writes. Trausch told him, "It's going to hurt. Because the store fronts in town like in Minden, Kearney, Hastings, Grand Island, wherever—they're going to be hurting. And then also, your implement dealers. They're just not going to sell nothing." John Deere has already been affected, saying it plans to layoff 1,000 workers at plants in Iowa. (Read more)