(NAFB)--The last six years have been extraordinary for row crop producers - but Ohio State University’s Matthew Roberts says the next six years won’t be like that. The agricultural economist advises farmers to prepare for several years of lower prices. Strong demand from China and the ethanol industry altered corn and soybean production globally during agriculture’s recent boom period. Roberts says a decent U.S. crop year in 2013 and curbed growth from ethanol may mean some acreage will revert back to pasture and forage crops. He says we are now entering a four to five-year period of lower costs and profitability. Roberts predicts some farms that expanded aggressively in the Corn Belt will go bankrupt. With the lower prices resulting from the first decent corn yields in four years - Roberts says more corn will be added back into feed rations and exports will increase. For soybeans - Roberts says domestic demand is flat but exports are very strong.
Roberts presented at a workshop of the American Farm Bureau Federation’s 95th Annual Convention.