The Agricultural Economics Department at Purdue University released a 2018 Ag Outlook Report that contained 12 different articles looking at different aspects of the Ag economy. Just some of the aspects covered include cash rents, farmland values, and the price outlook for corn and soybeans.
Professor Craig Dobbins says that reducing input costs has been a priority for farmers since 2013, but cash rents are slower to come down than most. Dobbins says that, “Reductions in cash rents have occurred. The cash rent per bushel of corn in 2013 was $1.43. Purdue’s projected cash rent for 2018 is $1.13 a bushel, down 21 percent over the last four years. Professor Chris Hurt says corn farmers have produced record crops three of the past four years. With ending stocks carrying over, 2017 will have one of the lowest average marketing prices in years.
Corn acres are expected to decline next year, meaning a possible return to more profitable prices in the next three years. Dr. Hurt says, even with more soybean acres next year, futures markets are suggesting a 2018 price that is 30 to 40 cents higher than 2017.
Source: NAFB News Service