AGRIBUSINESS: High Demand Drives Corn Prices Up
A dramatic jump in demand for corn, which began in late 2006, has resulted in sharply higher prices for all crops in the U.S. That is according to Dr. Darrell Peel, Oklahoma State University Extension Livestock Marketing Specialist.
A simple average across the eight major cultivated crops shows that 2012 crop year prices are expected to be 165 percent higher than in 2005. This has provoked intense competition among crops for land resources with crop market prices doing short term battle each year for acreage to plant. The epicenter of this crop frenzy is naturally in the Midwest and is reflected in the phenomenal jump in land values and rental rates in the region.
“Longer term impacts on land use are also expected as a result of this new agricultural environment. Though data is limited, there are strong indications that these long term changes have begun and they have significant implications for the beef cattle industry.”