Rural Issue

Iowa State economist sees ‘more traditional’ pricing pattern for grains

After a nice run of profitability in recent years, grain and soybean farmers now face what could be an extended period of grain prices that are at or near breakeven.

Chad Hart, crop markets specialist with Iowa State University, foresees a more traditional pricing pattern over the next few years, with market lows at harvest and market highs in the spring.

“That more traditional pricing pattern that we used to experience—say 5, 6, 7 years ago—before the biofuel boom took us to the record high prices and before the drought helped continue those record high prices,” Hart says.

Which means a return to what Hart calls “old-style” crop marketing.

Hart shared his thoughts in this interview with Brownfield.

AUDIO: Chad Hart