WEST LAFAYETTE — Farmers already seeing corn and soybeans prices plummet as the markets expect bountiful harvests have some potential safety nets that might help protect them financially, two Purdue University agricultural economists say.
Corn and soybeans futures prices have dropped to their lowest levels since 2010 – corn below $4 per bushel and soybeans under $11. That is partly because of higher yields expected for many farms this fall. Although high yields result in more bushels for famers to sell, the abundant supply leads to much lower prices, eroding profits.
“Midwest crop producers have been shocked by the sharp drop in corn and soybean prices as favorable weather has increased yield prospects this summer,” Michael Langemeier and Chris Hurt said in a review of crop insurance and a new government program. “Such large decreases in prices are raising anxieties among producers and their lenders regarding weak margins and the potential for tight cash flows.”
