Purdue News
Purdue News
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August 11, 2000 Record crop forecast for IndianaINDIANAPOLIS – Indiana is headed for a bumper crop this year. Now to find a market – and a place – for all that grain. Hoosier farmers are on pace to harvest record bushels of corn and soybeans. Prices are expected to drop, with soybeans near a 30-year low. Storage capacity also poses a problem. The August crop report was delivered today (Friday, 8/11) at the Indiana State Fair by Purdue University agricultural experts and Lt. Gov. Joe Kernan, Indiana's commissioner of agriculture. Based on Aug. 1 conditions, corn production is expected to exceed 860.2 million bushels, with soybean harvest estimated at 260.3 million bushels, said Ralph Gann, state statistician for the Indiana Agricultural Statistics Service. Per-acre yield is projected at 155 bushels for corn – a record – and 46 bushels for soybeans, Gann said. Indiana will produce 35.1 million bushels of wheat, at a record yield of 69 bushels per acre, he said. Nationally, U.S. soybean yield is up 13 percent (2.99 billion bushels) from 1999, with corn yield up 10 percent (10.4 billion bushels) and wheat yield down 2 percent (2.26 billion bushels) from the previous year. Kernan and Chris Hurt, a Purdue agricultural economist, said storing excess grain poses a challenge for farmers. "It's projected we have 1 billion bushels of storage capacity in the state for all grain," Hurt said. "This year, with carryover from 1999, we'll need 1.3 billion bushels of storage space, which is by far the most stress we've had on the system." Hurt said farmers may again be forced to pile mounds of grain on concrete pads. Kernan said state officials are addressing the storage issue. "We're acutely aware of the need for additional storage, and we're ready to send out guidelines to grain handlers to make sure additional capacity is available," Kernan said, including off-farm storage options. Grain prices are likely to fall, Hurt said. He estimates corn prices to average $1.65 a bushel and soybeans $4.35 a bushel. Corn was last priced lower in 1986, when it brought $1.50 a bushel. Soybean prices haven't dipped so far since 1972, when the crop brought $4.37 a bushel. Weather could still affect soybean prices. Corn is far enough along that weather is not a factor, Hurt said. Federal loan deficiency payments should help farmers realize good revenues despite the low commodity prices, Hurt said. Sources: Beth Forbes, Purdue Agricultural Communication Service, (765) 494-2722, bforbes@aes.purdue.edu DeeDee Sigler, Office of the Commissioner of Agriculture, (317) 470-7712, DSigler@Commerce.State.IN.US Writer: Steve Leer, (765) 494-8415, sleer@aes.purdue.edu Purdue News Service: (765) 494-2096; purduenews@purdue.edu
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