Indiana is set to have unexpectedly big corn and soybean harvests this fall. That means continued tight profit margins for farmers and more low food prices for consumers. Purdue University agronomists made their annual announcement of the state’s crop production forecast at the State Fair Thursday.
They say yields should be better than expected, after weeks of wet, patchy weather. But economist Chris Hurt says that extra supply for the same demand will mean bad prices for Hoosier farmers, whose profits have been tight for four years now. “The good news is there’s gonna be a big harvest, and the big harvest is gonna help us keep food price inflation very moderate. And while that’s not so good for the farm sector, that sure is great news for all of us as consumers and for the world that we are striving to feed.”
Despite ample production, the USDA is only rating about half of Indiana’s corn and soybean crop as good or excellent — another symptom of this summer’s uneven climate.