Dropping crop prices could push farmers' rents down
URBANA - After seeing declining prices on soybeans and corn, an economist from the University of Illinois says farmers who rent land will probably need to renegotiate the prices they pay.
According to economist Gary Schnitkey, profits for farmers this year and next will be "considerably below" the levels of the past few years. Schnitkey also says that renegotiating rents can be difficult, and that land owners need to be aware that the economic situation has changed for farmers after several profitable years.
The prices for corn and soybeans are the lowest they've been since 2010, with corn at $3.70 a bushel and soybeans falling below $11 a bushel. The drop in prices is due to the expected size of each crop grown, as farmers are expecting strong production due to a season of good weather.