By Scout Nelson
Corn is currently priced at $3.50 per bushel and Soybeans at $9.25 in South Dakota,
According to Jeff Kippley, Vice President of the South Dakota Farmers Union, these are not favourable prices, and the outlook for the future is far from optimistic. He explains that with grain prices being so low, many farmers will need high yields just to break even. But this creates a challenging situation.
Kippley points to an imbalance in supply and demand as a key factor in the price drop. There is more grain on the market than is needed, so while farmers may hope for high yields, the increased supply could drive prices down even further.
This has led some farmers to harvest their crops as soon as possible to avoid potential further drops in prices.
Despite the dry fall weather, Kippley says that many parts of the state received enough moisture earlier in the season to produce full crops. However, he warns that the current dryness poses risks, particularly with the increased potential for fires.
Farmers have been hauling disks and water trucks to the fields to prepare for fire hazards, and there have already been reports of equipment lost to fires during the harvest season.
In addition to the fire risks, the dry weather has depleted moisture from the topsoil, which could affect next year’s crop production. Kippley says a wet winter will be crucial for soil recovery.
Looking for potential solutions, Kippley believes that expanding the availability of E-15 fuel year-round would benefit the corn market.
He also suggests that farmers could invest in more on-site grain storage and consider contracting grain sales in advance, while also taking advantage of crop insurance to manage risks going forward.
Photo Credit: gettyimages-dszc
Categories: South Dakota, Crops, Corn, Soybeans