Low prices could stick around for the next few years. Researchers at the University of Missouri say large global stocks are helping suppress prices across the board.
“Yeah, we’ve had a lot of supplies globally right now. And unless there’s something, a big change of the demand side of the picture, ordinary weather conditions around the world the next several years would lead to continue large supplies. Obviously, we’re going to have some weather shocks the like in the near term, so we don’t know which year will be a good year, which will be might be a bad year. On average, we think current prices are more or less reflective of the current market situation,” said Dr. Pat Westhoff.
Westhoff says considering the current situation, there is not real need for farmers to consider acreage shifts for next year.
Dr. Ernie Goss joined us to break down the latest Rural Main Street Index, discuss pressures on farm finances and equipment sales, and share expectations for the ag economy ahead.
The spending bill keeps animal health and traceability funding in place while trimming several other USDA accounts.
New farm payment rules allow LLC members to have separate limits, but some local FSA offices are still applying outdated policies, creating confusion for producers.
March brought better prices for several commodities, but rising fuel and feed costs kept margins under pressure.
Farmers still earn only a small share of consumer food spending, even as post-farm costs continue to take most of the dollar.
Corn and cotton gave the strongest signals this week, while soybean demand remained softer than in the previous report.
