PDA

View Full Version : Price of corn


banc123
03-26-2007, 07:08 AM
I'm not a big corn user, but I do it use some in front of my cameras.

$7.75 a bag now. It was $4.50 up 70%.

Seems corn has to be one of the most profitable crops there are , or it was a looser before ? I know the ethanol crave has had an impact.

Anyone out there grow corn for profit or know someone who does ? Curious if the increase is making its way to the growers or ends up in middle man somewhere.

sandbur
03-26-2007, 09:10 AM
We have many more ethanol plants in Iowa, Minnesota. Fertilizer, fuel, seed, and rent is up. Farmers may now be able to make a decent profit. Everything could change by fall, but the ethanol plants will still need corn.

sboone270
03-26-2007, 09:37 AM
I paid $9 per bag 3 weeks ago and the lady at the co-op told me to be prepared for corn to hit $11 per bag before summer is over.

AaronS
03-26-2007, 10:28 AM
I have an uncle that crops corn, and when he was getting $2 something per bushel he wasn't making hardly anything on southern Indiana hills that average less than 100 bushels per acre. Now that prices are around $4 per bushel, maybe farmers will finally be able to make a decent profit.

HabitatMD
03-26-2007, 11:05 AM
The cash rent will be going up on ground due to the corn prices. Ground prices are going up. Going to be more expensive to feed cows, so beef prices should increase, etc, etc.

Not sure if farmers will come out ahead or not. I sure hope they do.

pharmer
03-26-2007, 01:06 PM
A farm near my home town in Iowa just sold for $6175/acre. It is all row crop in an area that isn't going to ever be development land. I was trying to work backwards but I can't make the numbers come out. Lots of people shaking their heads.

deerwatcher
03-26-2007, 01:10 PM
Prices are skyrocketing here in South Central Wisconsin as well. Rowcrop ground next to my dads farm went for $8000.00 an acre. Come on in Wisconsin.. The farmer bought 50 of the 100 the other 50 is still for sale but it is wetter ground. Hang on !!

VHORN4
03-26-2007, 01:18 PM
Banc123,

I have asked the same questions to my father-in-law that manages a few co-ops. He says the farmers will make more money but the prices of fertilizer, chemical, seed, etc... is following the price of corn up. In fact, there may be a shortage of seed corn this year because so many farmers are planting more acres of corn. Bottom line, farmers will make more but it won't be the same percentage that the suppliers are making on the corn products.

nastyjack
03-26-2007, 06:45 PM
Four dollar corn sounds great compared to $1.85 of a couple years ago. Of course fuel cost has doubled, fertilizer prices are skyrocketing, and equipment prices keep going up. All I ever wanted to do as a kid was take over the family farm, seems not getting that opportunity was a blessing. I hope my friends and neighbors can manage to make a little money and enjoy better prices for all they do for the rest of us.

Dutch
03-26-2007, 07:44 PM
I read somewhere that 20% of last years corn production went to ethanol. This year it is predicted to be 25%.

80 acre farm here in Lancaster Co, PA just went for $1,800,000.

Anderson
03-26-2007, 09:53 PM
banc, an increase in corn price should make for better profits for growers...but unless they contracted it at a good price already, the corn price this fall is pretty difficult to predict. Lots of folks have guesses and opinions and analyses, but the Chicago Board of Trade (which basically establishes the national corn price, adjusted for location) is nothing but a big ol' auction. Prices depend on bidding, and bidding depends on the actions of people. I find the latter to be somewhat unpredictable.

So if the corn farmers are finally able to sell a crop above $4, they should make pretty good money on the crop as long as they have a decent yield per acre. Increased variable costs (i.e. fuel, fertilizer, rent) will take a bite out of the bottom line for sure.

Biggest question I have on the ethanol corn demand is timing: what happens to corn prices if a huge crop comes off this fall, but new ethanol plants are not ready for it at that time?

Can we relate this thread to deer management? Increased corn acreage may change wildlife habitat this summer. If the midwest farmers all get rich on corn this fall, maybe they will have more money to go out west hunting and thus leave their local bucks alone...to get a year bigger for '08.

ZHfarms
03-26-2007, 10:15 PM
We have had two pieces of ground sell in our vicinity in the last year. One was 55 acres, and it sold for $5300 an acre. The other was 240 acres, and sold for $6100 an acre. Unreal! The math just doesn't work.

THE, LLC
03-26-2007, 10:22 PM
Check around on those land purchases. Pretty good chance it's foreigners or oil tycoons. That way if ethanol ever does make a big dent in foreign oil dependencies, the same folks will have control.

THE

jkell14
03-27-2007, 12:10 PM
Check around on those land purchases. Pretty good chance it's foreigners or oil tycoons. That way if ethanol ever does make a big dent in foreign oil dependencies, the same folks will have control.

THE

One was 55 acres, and it sold for $5300 an acre. The other was 240 acres, and sold for $6100 an acre.

No offense, but an "oil tycoon" would probably be able to afford more than 55 or 240 acres. And its going to be pretty tough to control anything with that acreage even if they are buying several of them since there is going to be 89,000,000 acres in corn this year.
That is pretty crazy for farmland though. It'll take many bushels of corn to pay for that even at $4.