Farmers have certainly had their share of struggles with planting this year, but there is a bright spot coming - very strong future prices for most crops.
But even if farmers can get more, will it make a difference after input costs have skyrocketed, too? USDA Chief Economist, Seth Meyer shares his thoughts.
“I think what we’re observing right now is output prices covering additional input costs at the moment, but I think if input prices remain elevated into next crop, and we have a decent crop, we might see some softening of prices and then maybe we’ll see returns come under some pressure as we get into fall and think about next crop.”
Several factors driving up future prices right now include expected smaller domestic yields, supply impacts from the war in Ukraine, and for wheat, India’s recent export restrictions.
Related:
USDA: Expect high corn prices to remain through Fall harvest
Watching crops grow and profit margins shrink
Input prices could cause crop acres to move from corn to soybeans
