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USDA chief economist discusses 2019 challenges, opportunities
2019 continues to be a challenging year for farmers across the US as they face low commodity prices, bad weather, and trade disputes.
USDA Chief Economist Rob Johansson says more challenges are ahead for farmers, but better-than-expected corn yields in some areas could help farmers who are struggling.
“Producers did get out and plant a lot more corn than people expected and yields are turning out to be better than people expected so it could be that we get a pretty decent corn crop coming off this year,” he says.
As for soybeans…“Soybean production is way down, acres were down, yield is down a little bit and we’re going to really cut into that carryover which is probably a good thing for prices going forward,” he says.
Johansson says the USDA’s estimated prices for corn, soybeans, and wheat over the next 10 years is relatively flat.
“Corn at less than $4 a bushel, soybeans at $9 a bushel, and wheat at $5 bushels is kind of a sobering thought,” he says.
He says there is good news with farm income, as it is forecast to increase for a third consecutive year.
Brownfield spoke to Johansson at the annual agriculture conference by the Federal Reserve Bank of Chicago.
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