Pressure On Commodity Prices Expected For the Next Decade

Unless there are some major unforeseen developments in world agricultural markets, the pressure on U.S. farm commodity prices and farm earnings will likely continue over the next decade.  USDA's recently released its full version of it's ten year Ag projections, up through 2028.  The analyst that coordinates this yearly effort, Dr. David Stallings, says current and recent trends as far as pressure on commodity prices, income levels, and such may be continue into the future.

"Prices for most crops we expect to remain low to the recent past."

USDA projecting corn prices to increase only 4% over the next ten years, and soybean prices moving up 10% during that same time period.  Wheat meanwhile is expected to lose a nickel a bushel in the next decade.  One reason for this decade of price pressure.

"Not only are we going to be increasing production over time, our competitors will as well."

U.S. net farm income could still climb from this year's projected $69.4 billion to $79.5 in 2028.

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