In the past year, farmers have watched the price of grain drop to around the lowest in four years. Dan Swanson, Illinois District 71 State Representative, explains in June of 2023, corn was $5.59 per bushel and soybeans were $13 per bushel.
“And in June of 24, $4.20 for corn and $10.76 for beans. And that’s quite a difference in pricing,” says Swanson. “With these rains and the corn now tasselling and the temperature at a pretty moderate level, we can pray that we get a great crop based upon these weather conditions. But, it takes one of those bin busters to help meet the expenses and costs of producing this corn and beans right now.”
Historically, grain prices tend to drop during the summer months, with the exception of drought years. Starting in July, grain prices still have the potential to shift based on weather and if there is an increase in demand, especially in trade. Swanson points to a recent Farm Week Now article that forecasts a record $32 billion U.S. ag trade deficit.
“We look at the the economy, and we look at the struggles, there’s a reason why John Deere is having to lay off,” says Swanson. “We look at a $32 point billion trade deficit when we’re not marketing our corn, we’re not marketing our beans, and we’re not selling our livestock across the globe. It affects the ag industry, which affects our banks, and everything in our smaller communities.”
According to the USDA’s most recent quarterly agricultural trade report, for the 2024 fiscal year, ag exports are forecasted at $170.5 billion, and imports are forecasted at $205.5 billion.
