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Woodbury county | With the extreme drop in the price of corn, I think the corn market is creating a problem for itself long term. The market is telling us that they need even more corn acres next year. The prospect for $4.00 corn must have been the stimulus for so many cotton acres going to corn. Now that the market has dropped nearly a dollar, will the cotton areas next year be willing to go corn on corn with the problems with growing corn on corn and at much lower prices? With fewer acres of cotton this year, will that improve cotton prices next year, making cotton crops look more appealing? With much lower corn prices, the ethanol industry has to be looking at these prices as encouraging even more expansion. Even the livestock industry was looking at $4.00 dollar corn as maybe the future norm, and now that drop of nearly a dollar, surely looks much more encouraging to them possibly slowing or stopping their industry reduction. And I think we all are going to remember next year the big buildup in hype for expanding corn acres in February, only to have the market react violently after there is an indication that corn farmers are going to plant more corn. And with more corn on corn acres this year, are all farmers going to go corn on corn on corn on....etc. forever, or is there a need for some common sense approach to crop rotations.....? I was going to increase my corn acres modestly in the coming year, but the market is telling me now that they aren't willing to pay me more for any increase in corn acres....! | |
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How long for the trickle-down effect??
