AGRIBUSINESS: Lower Corn Prices Predicted in Near Future
Pat Westhoff - Director of the Food and Agricultural Policy Research Institute at the University of Missouri – says $5 corn will be the norm in the future. In fact -he predicts we’ll likely average below $5 corn for the next five years. Westhoff made his comments at a Kansas City Federal Reserve forum on global agriculture. His figures are based on FAPRI’s long-term crop and economic models. Should yields fall as a result of a widespread crop disaster – the U.S. could see spikes to $6-$7 but if the crops are as big as some think – Westhoff says we could see $3 corn again. He says part of the issue is that the world population is actually leveling off and about to decline. Westhoff says farmers around the world have ramped up corn and soybean production and the excess production could swamp markets at times.