Low corn price places caution on farmers and ag industry
Written by Ally Crutcher, Multimedia Journalist - bio | email
WATERLOO (KWWL) -
A bushel of corn currently sits at roughly $4.12, and according to NASDAQ, that's a price that's been declining for at least the past two weeks.
Area farmers and business owners worry about that low price, and suspect the downward trend to continue. Roger Kalsem owns Kalsem Implement and Salvage. He said three factors contribute to corn's astonishing low price:
1. Fewer cattle to feed 2. Large amount of overstock from last year 3. Exports are down
"Put everything together, there isn't much reason for corn prices, or soybeans or wheat, there's not much reason for them to rebound," Kalsem said.
A four-dollar bushel means less revenue flowing, and consequently, less buying on farmers' end. Kalsem also explains that the sagging corn price trickles throughout the entire agriculture sector; those working in fertilizer companies and factors, for example, get less money in their pockets, too.
Kalsem and other farmers fear this jolt to the ag economy will hinder Iowa's overall economy in months to come, since after all, Iowa is an ag-driven state.
"We can't flip over into some other industry or job right away, we're ag. It is going to have a far-reaching effect."
Kalsem suspects it's very possible for corn prices to plummet below $4 in the coming months.
Sunday, March 9 2014 10:45 PM EDT2014-03-10 02:45:03 GMT
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