(Ames, IA) -- Iowa State University Ag Econ Professor Chad Hart is projecting continued strong prices for corn and soybeans, even if U.S. farmers put more acres into production as corn and soybean prices are up about 50-percent over the past few years.
“Nationwide, what we’re going to see is farmers throughout the country planting more crops, more corn and soybeans,” Hart said. “Farmers are using more farmland this year for crops than they have the past few.”
Hart says he expects Iowa's corn and soybean acres to remain stable, but other states could see more acres planted due to higher commodity prices, incentivizing farmers.
Hart also predicts continued healthy demand for corn and soybeans. He says the livestock industry has shown strong demand for feed, while international markets such as China remain strong as well. Mexico, Japan, Columbia, Guatemala and South Korea also have grown as international markets for U.S. crops.
“Usually, more acreage means more production, and that should mean lower prices,” Hart said. “In most years it would. But this year seems to be an exception because, at least from what the markets are indicating right now, there’s enough demand worldwide to help absorb those additional acres and the supplies that will come from those acres.”
(Photo Getty Images)