MU FAPRI Report: 2012 Corn Yields Lower Returns

The Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri-Colombia has released its crop yield and price projections for 2012. According to Pat Westhoff, director of FAPRI, "While net farm income may fall a little short of last year, we expect 2012 to be another good year for most producers," He added that, "with normal weather, a bigger crop in 2012 may lead to lower prices this fall," Westhoff said. "Other crop prices tend to follow corn."

The report also gave projections on ethanol production which remains to be at the 2011 to 2012 level after years of rapid growth; soybean prices for 2012 remain over $11 per bushel, after averaging an estimated $11.61 for 2011-12; and meats will show the highest inflation in 2012, as they did in 2011. Production costs grew at $36 billion, almost 12 percent, in 2011 due to price increases in feed, fertilizer, and fuel.

See the Report at http://www.fapri.missouri.edu/