Producers Expected to Benefit from Crop Prices
USDA economists predict strong crop prices are likely to continue for a good while. And unlike last year, producers will likely see more of the benefits.
USDA Chief Economist Seth Meyer says prices first began to rise last summer, but farmers had already marketed their crops at the previous lower rates.
Meyer:” Now there’s an opportunity moving forward. The market will be on edge and they’ll be an opportunity to capture more of the higher prices in their marketings and so producers will be able to take advantage of it.”
USDA forecasters predict rice growers will see a 2% increase in price, cotton growers a nice 10% boost in prices, 29% for wheat, soybeans should rise 23%, and corn prices are expected to increase 31% from the current marketing year.
With the higher prices, expectations are also up for a record production cycle for most of those crops. But with higher demand, even record production will not mean surplus stocks according to the USDA’s Outlook Board Chairman Mark Jekanowski. He says that will translate into continued high prices for quite some time.
A snapshot of Southeast Crop conditions
In Alabama, heavy rains throughout much of the state made it challenging for many producers to prepare for the planting of row crops. In some areas, growers considered planting soybeans instead of cotton due to field conditions.
Florida’s cattle and pasture conditions remained in mostly fair to good condition throughout the state thanks to rainfall.
In Georgia, onion harvesting is closer to completion. Some peach producers in the northern part of the state stopped spraying their crop due to damage received from the late frost a few weeks ago.