After harvesting two record crops in a row, U.S. farmers will cut back on corn plantings in the spring and produce a comparatively small 13.073 billion bushel-crop, says agricultural economist Dan O’Brien of Kansas State University. That would be 1.4 billion bushels or 10 percent less than the current crop but still the fourth-largest crop ever. The farm-gate price for corn nationwide is forecast by USDA to be the lowest in eight years. discouraging farmers from planting corn. Analysts say soybeans will offer better returns, even with a record crop this year too.
In a presentation posted at KSU’s Ag Manager site, O’Brien says corn plantings will drop by 3 percent from this year’s 90.9 million acres and yields will return to normal rates, resulting in the 13.073 billion-bushel crop. The season-average price would surge to $3.75 a bushel for the 2015 crop if corn demand remains strong, he says. It would be a rebound from the $3.40 a bushel forecast for this year’s crop and give farmers a bit of relief from rising production costs.
A University of Missouri think tank has projected a similar price – $3.75 a bushel – for the 2015 crop. The Food and Agricultural Policy Research Institute said earlier this month, “Corn acreage could decline in 2015, and more typical growing conditions would result in lower yields next year.” FAPRI did not say how large the crop would be.