NASHVILLE, TENN. (RFD NEWS) — High input costs are still a major pressure point for growers this year. A recent farm survey shows consolidation is top of mind for farm country right now.
There are a number of issues weighing on agriculture. One Maryland producer says it is a level of pressure he has not seen in decades.
“So, I see what’s going on as a farmer every day. American agriculture is at a turning point,” said Chip Bowling. “Costs for fuel, fertilizer, and other farm inputs are too high. Crop prices have stayed mostly flat, if not trending down, and many farm families like mine are feeling the financial pressures not seen since the ‘80s farm crisis. At the same time, we’re producing more grain than ever, thanks to higher yields and better technology, but demand hasn’t kept pace. This means too much supply chasing too little demand.”
One ag group says increasing demand for biofuels could help turn that situation around.
“It explains how biofuels can usher in a new era of prosperity and abundance, and that requires arming stakeholders with the best possible data,” Kevin Burke said. “For too long, important decisions have been built on the assumption that demand for food and fuel will naturally keep pace with rising yields, and for too long, agriculture has been treated as a zero-sum game, one where food, fuel, and other bio-based products compete against one another for limited resources. That is not what this data shows. As S&P Global Energy makes clear, sustaining investment in American agriculture will require more demand, not less.”
Burke says that if farmers are able to secure new biofuel markets, it could transform the entire American agricultural industry.
The latest supply-and-demand forecast indicates more corn will be produced overseas this year. Despite the additional bushels, one agricultural economist says U.S. corn exports should remain strong this season.
“USDA did tip their hand a little bit and recognize the strong corn exports and commitments we have for the current marketing year, as well as setting up for next marketing year,” explained Ben Brown. “Some of that bullish shine was taken off as a result of this 14 million metric tons of additional global production, but I think the corn export picture remains very strong. They did make a reduction in the corn ethanol numbers here in the U.S., and corn used for ethanol. But I don’t think that’s anything to be concerning. Those expectations were high to begin with, and we’re just seeing technology and the efficiency of converting corn to ethanol really kind of take place, and so, I’m not concerned by the numbers by any means. It’s a strong corn balance sheet.”
The latest export inspection numbers show corn shipments leaving U.S. ports last week fell nearly 20 percent from the previous week. However, they remain largely in line with levels seen at the same time last year.
