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Record yields challenging Michigan basis

The chairman of the Michigan Corn Growers Association says record corn and soybean yields will challenge profitability this season.

Matt Frostic tells Brownfield, “That does contribute to a higher basis on corn and lower prices overall.”

“That’s certainly a battle we’ve got to walk through this year. It’s nice to have the volumes, but obviously we’ve got to figure out how to grind this corn and get it into the market,” he says.

He says low moisture levels are at least helping cut down on drying needs.

“With propane prices starting to creep up, I think that’s at least going to help in this cost of producing corn that’s been higher to produce than what we’re getting out of it at this point,” he says.

Frostic says he’s concerned price instability could be even worse if a new farm bill isn’t passed before the end of the year.

USDA is forecasting a record corn yield of 179 bushels per acre and a record soybean yield of 52 bushels per acre for Michigan growers.