In the absence of a crystal ball, here’s what some industry experts are predicting for farmers in 2019:
- Fewer soybeans, but more corn and spring wheat – The U.S. is expected to continue to be the number one corn producer in the world, but tariffs will make Brazil the top soybean producer. U.S. soybean farmers are likely to transition to corn or spring wheat.
- Corn prices likely to increase to $3.90 per bushel – This is likely due to three years of strong international demand for meat as producers rely on corn to feed their livestock.
- A shift in trade – Over the past year, the U.S. doubled sales to the European Union and Mexico, which are now our top two soybean export markets.
- Cost and profits flat – Fertilizer and fuel prices may increase, but lower cash rents will balance it out.
- Better dairy markets – Since it can’t get much worse, prices are likely to increase, but the predicted 5 percent gain won’t offset large losses.
Provided by Zywave and submitted by Nate Laidig, Synergy Insurance Agricultural Account Executive