By Cole Lauterbach/Illinois Radio Network
SPRINGFIELD – The U.S Department of Agriculture predicts another challenging year for farmers struggling to make a profit in 2017.
USDA Chief Economist Rob Johansson told a crowd at the department’s outlook forum last week that the operating profit margins (OPM’s) for farmers remain tight and that crop prices this year aren’t expected to bring relief.
“U.S. prices for most agricultural crops are expected to be flat or slightly higher for the 2017-2018 marketing year,” he said.
OPMs nationally have dropped 30 percent since 2013, leading to a profit decline for family farmers.
Johansson offered the department’s predictions.
“Corn prices are expected to edge up only slightly to $3.50 per bushel, up three percent from last year, but down more than 50 percent from the 2012 record price,” he said. “Soybeans are forecast at $9.60 per bushel, up about one percent,” he said.
Wheat production and yields were expected to drop in 2017.
USDA Analyst Rachel Trego said that soybean use here and abroad could drive up demand and be a money maker for farmers.
“Exports [are] declining except for soybeans. Domestic use [is] declining except for soybeans,” she said.
According to the USDA, Illinois averaged 197 bushels per acre of corn in 2016, 22 more than the national average. Illinois soybean farmers yielded 59 bushels per acre last year, a record in the state.
