Margins expert Chris Barron shares helpful information on what farmers need to know about the big issues surrounding this year’s late planting.
To say farmers are uneasy about this year’s planting season is a major understatement. AgWeb’s margins expert and Iowa farmer Chris Barron held a meeting at his farm this week to address questions from area farmers about late planting. They talked about crop insurance, agronomic issues and market impact.
Barron provides an overview of the meeting:
In terms of planting decisions, Barron believes many producers will keep trying to plant corn for maybe another week or two, even with reduced insurance coverage.
Many farmers and analysts are starting to compare this year’s season to 1993, when floods swept across much of the Midwest. The good news, Barron says, is we’re not to 1993 levels, et.
Barron says he’s received a lot of questions from farmers who are wondering why the corn market is not higher, when it seems evident 2013 will not be a bin-busing corn crop.
Barron says Chip Flory, Pro Farmer editor, addressed this issue during their meeting.Flory points first to export levels. He says the U.S. is at the lowest level of exports since the early 1970s and that last year’s high prices destroyed a lot of demand.
Another reason prices are saying lower, he says, is because 98% of the funds don’t believe we have a problem. "Rain makes grain. So the markets won’t respond to this weather until it rains enough to not grow a crop."