By Andi Anderson
Ohio agriculture is facing a challenging year, with crop exports and prices continuing to decline, putting significant pressure on farmers across the state.
The Ohio Agricultural Council recently honored five outstanding agricultural leaders, recognizing their contributions to the industry. However, the current situation for Ohio farmers is far from celebratory.
On August 2, the U.S. sold 7.4 million bushels of new crop soybeans to China, bringing the total for the year to 130 million bushels. This figure represents a five-year low, with last year’s sales already reaching 210 million bushels by this time.
Meanwhile, Brazil's soybean exports soared to 3.744 billion bushels in 2023, a 29% increase from the previous year. In contrast, U.S. soybean exports fell by 14% to 1.789 billion bushels.
The situation for U.S. corn and soybean production in 2024 has also seen a dramatic shift. Early projections indicated potential challenges in reaching last year’s corn yield of 177.3 bushels per acre.
However, following Tropical Storm Beryl, which brought heavy rains to the Midwest, yield expectations improved slightly. Despite this, the overall trend for corn and soybean prices has been downward, with both crops experiencing significant price drops throughout the year.
As of August 1, new crop December 2024 CBOT corn reached a low of $3.95, while November 2024 CBOT soybeans fell to $10.13. These figures are well below the highs seen earlier in the year, reflecting the difficult market conditions facing farmers.
Compounding these challenges, the crop insurance Revenue Plan set February prices of $4.66 for December 2024 CBOT corn and $11.55 for November 2024 CBOT soybeans. With prices continuing to fall, many farmers may find themselves in a loss scenario, particularly those with average yields and rising input costs.
Ohio producers are now confronting a scenario not seen in over a decade—low yields combined with low prices. In contrast to 2012, when high prices offset reduced yields, this year’s combination of factors is creating an unsustainable situation for many farmers.
The farm economy is experiencing grain prices at four-year lows while input costs remain near multi-year highs.
Looking ahead, the next one to two years may bring further reductions in farm income as expenses continue to exceed revenue. For Ohio farmers, the road ahead is uncertain, with economic pressures mounting and the need for strategic planning and support becoming more critical than ever.
Photo Credit: gettyimages-nicexray
Categories: Ohio, Business