The Farm Belt faces plunging crop prices and stubbornly high production costs. Corn prices have dropped from $7.54 a bushel around July Fourth in central Iowa to just $3.81 a bushel on Tuesday. But growers are hearing from suppliers that fertilizer and seed costs could rise by more than 40% each for next spring's plantings. Some farmers are postponing equipment purchases and considering whether to plant less of high-cost crops such as corn come spring. Stock prices of agricultural companies have plummeted: The shares of
Bunge Ltd., which sells fertilizer to farmers and processes soybeans, have dropped 67% since June, while
Archer-Daniels-Midland Co., a grain processor and exporter, is 60% off its 52-week high. More
here.
The Farm Belt faces plunging crop prices and stubbornly high production costs. Corn prices have dropped from $7.54 a bushel around July Fourth in central Iowa to just $3.81 a bushel on Tuesday. But growers are hearing from suppliers that fertilizer and seed costs could rise by more than 40% each for next spring's plantings. Some farmers are postponing equipment purchases and considering whether to plant less of high-cost crops such as corn come spring. Stock prices of agricultural companies have plummeted: The shares of Bunge Ltd., which sells fertilizer to farmers and processes soybeans, have dropped 67% since June, while Archer-Daniels-Midland Co., a grain processor and exporter, is 60% off its 52-week high. More here.
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