An agricultural economist says potential low yields of corn and soybeans are driving crop prices up. But that’s not necessarily good news for farmers.
At the beginning of June, farmers predicted an above average yield of corn and soybeans for the year.
But, Mother Nature had her own plans.
Consistent rain has drowned fields, ruining some crops.
Purdue University Agricultural Economist Chris Hurt says that’s driving sale price of corn and soybeans up, but the overall value of the crop down.
"We’ve seen the value of the Indiana crop just looking at the potential crop losses decline at about $300 million on corn and about $200 million on soybeans," says Hurt.
Many farmers will get some relief from crop insurance, which usually covers 75 to 85 percent of a farmer’s losses.