Mississippi beans: Record average yield in 2011
One factor making soybeans an attractive row-crop option is their relatively low cost of inputs. Bankers in the current tight economy were more willing to lend money for soybeans than for crops that have higher up-front costs.
“A farmer can borrow significantly less money to grow an acre of soybeans, as opposed to borrowing several hundred an acre to grow cotton,” Eubank said. “They can stretch their dollars further and grow more acres for the same amount of money.”
John Michael Riley, Extension agricultural economist, projected Mississippi’s marketing year average soybean price to be $11.78 per bushel.
“This was slightly higher than 2010 prices and followed the same path as most ag crop prices, which have been moving higher since 2006,” Riley said. “Export demand was very beneficial through the first half of the year as prices moved higher, but lackluster demand and a growing inventory suppressed prices moving through harvest.”
Riley said global financial uncertainty is giving a negative tone to commodity markets.