by Ben Nuelle
The department of agriculture will release the World Supply and Demand Report Thursday.
The prediction record corn yields.
American Farm Bureau Federation hosted a panel of economists at their annual meeting in Phoenix Monday morning.
John Newton is Director of Market Intelligence.
He says this Thursday’s WASDE report should confirm corn yields at 175 bushels per acre.
“Just think in 1960, it would have taken 260 million acres to produce the corn crop we produce today. We’re going to do it this year with 86 million acres harvested and if we continue to see the productivity gains in yields, in 40 years we are going to do it with 20 million fewer acres. But we are going to see these crops to get bigger so the supply side will continue to add pressure on prices.”
Newton says this leads to the demand side and trade
“Trade is very important to U.S . Agriculture. In 2015, trade contributed $133 billion to U.S. farm income. We see how important it is to our market because our domestic market is mature. The growing markets are going to be overseas.
He says countries we need to do business with include China, Mexico, and Japan to name a few.
The panel also included farm bureau chief economist Bob Young, and economist Katelyn McCullock.