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Low prices expected for at least another two years

An ag economist says farmers can expect continued market volatility in 2017.

Jim Hilker with Michigan State University says the market is calling for a shift to more soybean acres.  “Right now soybean prices, if you look at cash today, are over three times what they are of corn and long-term history says about two and a half.  There’s other things cost involved but that’s a rough way of saying soybean acres must be paying more than corn.”

He says land costs are the largest input cost where farmers have room to adjust to their cost of production and those need to come down for at least the next two years.

AUDIO: Interview with Jim Hilker