The United States Department of Agriculture projects record yields for Indiana farmers this year. But demand has fallen, in part because of Chinese tariffs on U.S. corn and soybeans, so farms’ cash flow could be limited.
Soybean prices have fallen from about $10 a bushel earlier this year to around $8 today. Purdue University agricultural economist Chris Hurt says on top of the tariffs, excess product will hurt prices this year, and impact 2019 production.
“When we have very large production, we tend to have extremely low prices,” says Hurt. “Farm incomes have been depressed for the last three years and that’s going to continue to be the case now it looks like for the next year.”
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