Where Did All the Corn Acres Come From?
The rapid decline in commodity prices has pushed prices toward, if not below, breakeven prices for many producers. Due to forward sales, possible crop insurance indemnities, and government payments, the profitability outlook for this year remains better than bleak for many producers. However, recently released budgets for the 2015 crop look downright ugly. For instance, Purdue’s budgets show a net expected loss ranging from $156 to $317 per acre on average quality soils. Results from Illinois suggest a similar situation. (more…)