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Farmers are facing a time of moderation

Purdue ag economist Chris Hurt calls 2013 and 2014 transitional to the crop sector.  He tells Brownfield prices were transcending from very high prices to more moderate ones.  “The ’13 crop, as an example, averaged about $4.50 a bushel,” he says.  “It looks like this very large ’14 crop $3.50 a bushel.  Is coming down off the highs of $7.00 during the 2012 drought year.”

Hurt says the industry is moving from a boon time to one of moderation… but, not a bust.  “Absolutely not,” he says.  “When we go through a boon and bust cycle we see characteristics that we don’t have this time.  One of those characteristics is that the boon always comes from a demand surge.  We had a demand surge in corn use for ethanol and the big increase in soybean exports to China.”

And, in a bust cycle, the industry would see a dramatic drop off in demand.  Which, he says, has not been the case.