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Ag economist: low soybean, corn prices will linger

A University of Illinois ag economist says farmers should expect low soybean revenues at harvest.

Gary Schnitkey tells Brownfield the soybean harvest price will likely be around $8.36 down nearly 80 cents since early spring.

“We’re looking at very low revenues, and we’re still not at the point where we’re going to get payments on crop insurance,” Schnitkey said.

He said the drop in expected revenue has been largely due to COVID-19 control measures and for crop insurance payments to begin to be paid out, prices would have to fall below $7.80.

Schnitkey said he does not see lower than normal soybean or corn prices fully rebounding anytime soon.

“I would look for these low prices to continue into 2021 in particular,” Schnitkey said.

He said national soybean yield totals will be the largest price dictator moving forward but increased trade with China would have a positive affect on price. The soybean harvest price projection was made by economists at the University of Illinois and Ohio State based on the USDA’s projected soybean yield of 49.8 bushels per acre.