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The end to the Era of Grain
The economics of the ag industry are changing. Purdue ag economist Chris Hurt says the last several years may have been the era of grain, but as corn and soybean prices continue to decline – that is changing. “What we’re moving into now is a real diminishing of the grain era,” he says. “Those end users – like the livestock sector – the next several years may be their era where they are coming back with good incomes and rebuilding these herds.”
However, Hurt says the ag community would prefer to see more balanced incomes. “I think as we look back on this time period we’re going to say the grain sector had those years where it was extraordinarily on the high side,” he says. “We’re going to get adjustment – most crop producers are going to have make adjustments. BUT, in the long run, it is a good thing to get these sectors back in better balance.”
Hurt made his comments during a panel discussion about USDA’s August Crop Report at the Indiana State Fair.
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