The great majority of corn, soybean, wheat, and cotton growers expect commodity prices to muddle along at current levels through next fall, says a monthly Purdue University poll of 400 producers. The Ag Economy Barometer says only 20 to 25 percent of row-crop farmers expect higher prices in the next 12 months, though an even smaller portion of them — 10 to 12 percent — believe prices will worsen in a slump that began four years ago.
With both farm income and commodity prices down, growers are looking for ways to control costs. The Purdue poll found a sharp increase in the portion of farmers, 59 percent, who say used machinery prices are high. The figure, up by 9 percentage points from July, is the highest rating since Purdue began asking the question in January 2016. “The shift … could be an indicator that used machinery values are strengthening,” said Purdue, noting that “anecdotal evidence from some Corn Belt farm equipment dealers suggests that sales volume during 2017 improved.”
Last year, nearly half of farmers polled by Purdue said they would reduce fertilizer application rates as a cost-cutting measure. This year, only one-third say they’ll do that. “Fertilizer prices, particularly for anhydrous ammonia, are lower than a year ago,” said Purdue. Notable portions of operators say they will reduce seeding rates or change seed varieties next year. Growers expect land rental rates to hold steady in 2018.