2013 projected crop farm incomes: A drought reprieve
The drought resulted in higher corn and soybean prices. These prices delay the return to more normal price levels, likely in the mid-$4.00 range for corn and mid-$12 per bushel range for soybeans. The higher projected prices then result in higher projected 2013 incomes then had the drought not occurred. One unfortunate aspect of this drought increase may be that cash rent levels likely will continue to increase in 2013. These increases likely are larger than would have occurred without the drought. When corn and soybean prices return to more normal levels, the necessary downward adjustments in cash rents may be more painful and protracted than had the drought not occurred, particular for cash rents in the higher range.