Higher yields we’ve been there before! Does that mean there is no relief for what now appears to be a weakening ag economy? Listen Now.
Yet again, we’re seeing higher yields but we’ve been here before, says Jerry Gulke, president of the Gulke Group. In this week’s Weekend Market Report on Farm Journal Radio, Gulke discusses the current markets, the livestock sector, along with a little history lesson on surprising yields since 2004.
The November USDA crop report surprised the market with respect to the corn yield—another record—but “that shouldn’t have been a big surprise, we’ve done it before,” says Gulke.
Certainly this crop report didn’t do anything for the weakening ag economy by producing more bushels, which in turn presents farmers with lower prices. He explains, “In history, we’ve done this before and maybe we need to give more credit to the weather than seed technology.”
The deteriorating ag economy is also having an impact but is no surprise to many farmers, however, it is still a concern. One of the main ingredients is weak cash flow, which leads to a deficiency in working capital. Could this mean farmers might switch to more non-GMO traits seed in the future? And if Mother Nature again steps in, could that be the savior for U.S. surpluses?
Find out in this week’s Weekend Market Report.