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Farmers Worried About Lowering Crop Prices
Indiana Ag Connection - 06/08/2023

Farmer sentiment dropped sharply in May over concerns about weak crop prices, rising interest rates, high input prices and recent U.S. bank failures.

According to the Ag Economy Barometer, a monthly telephone survey that gathers information from 400 U.S. agricultural producers, declining crop prices were the largest factor hurting farmer sentiments. Delivery bids for corn fell 10 percent, while wheat and soybean bids fell 8 percent.

Shellye Suttles, assistant professor at the O’Neill School of Public and Environmental Affairs at IU, said that more acres planted have caused the decrease.

“I would say domestically first and foremost, more farmers planted more acres, and that's expected that these acres will have increasing yields,” she said. “So, when we have this kind of increase in supply of agricultural commodities, if nothing changes about demand for the product, we will see this kind of change in equilibrium where the new equilibrium will actually lead to a lower price.”

In the background, corn and wheat prices have stabilized overseas, though that may change due to recent events.

“I would say until yesterday, I don't know if you saw the dam breaking in Ukraine yesterday, but there was more conversation, more sentiment around having more security in global wheat and corn prices,” she said.”


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