Corn Coming out of our “Ears”
Many are calling the USDA Planted Acreage Report that came out this week “Bloody Tuesday” since the amount of corn acreage planted this year was much higher than what the trade was expecting.
Even though there was a large amount of rain early in the Eastern Corn Belt, three of the Western Corn Belt states, Iowa, Missouri and Nebraska raised their production by 1.3 million acres to more than offset this. In all, the planted acreage exceeded the March intentions by about 2.049 million acres. That was a surprise to many, given the volume of delayed plantings from Ohio to Missouri. But we know how well farmers can plant crops when mother nature cooperates and this report reflects that for corn.
Unless there is some type of weather scare, it would be my opinion that corn prices have put in their high for the year and may be headed down under the $3 per bushel range.
I hope that most of the farmers that read this site, have locked in much of their 2009 corn farm production near the $4 per bushel range. Their have been many days when you could have done this and at $4 corn, you can certainly make money.
If you have not locked it in, you need to review your budget and find out how this effects your 2009 bottom line and respond accordingly.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
Comments are closed.