(Jamie) Welcome back to Farm Factor and this week’s Kansas Farm Bureau Update.
(Michael Clements) The Crop Production forecast from the National Ag Statistics Service predicts a record corn and soybean harvest this fall. American Farm Bureau Federation market intelligence director John Newton explains the numbers. (John Newton) USDA projected the corn yield for this new crop at 175.1 bushels per acre. That’s a new record. A similar scenario happened on soybeans. We saw USDA forecast soybean yield at 48.9 bushels per acre. So these are very big production numbers and if realized would set records for both crops. (Clements) While Newton says the forecast means lower prices for farmers, he cautions that the yield forecast could change heading into harvest, providing the potential to improve current low crop prices. (Newton) We still have key growing season for soybeans yet. August temperature and precipitation data is yet to be known. For corn, issues on tip-back are still unknown at this point. So there’s still opportunity for these prices to improve. (Clements) Given the current crop price circumstance, Newton expects federal programs to help farmers this year. (Newton) The golden age of agricultural incomes is over for the most part. We’ve seen corn prices decline from their record highs of 2012 and 2013. And, while we’re producing more per acre at these lower prices, farm revenue is also continuing to decline. But, the good thing is that we do have crop insurance. It’s likely that revenue production programs for corn and beans may kick in this year on these price declines alone. (Clements) Micheal Clements, Washington.
(Jamie) Hope you enjoyed the Kansas Farm Bureau Update! After the break learn how one producer changed and expanded his operation, even when faced with adversity.