John Pocock, Corn & Soybean Digest
The corn profit picture for 2012 isn't quite as rosy as 2011, but the marketplace could still offer very lucrative returns for growing corn this season, says Chad Hart, Iowa State University agricultural economist.
"In Iowa, we’re projecting season-average prices to range between $5.30 and $5.40/bu., and we’re projecting inputs costs to be about $4.40/bu.," says Hart. "So, if that holds true, the market in Iowa will be offering 90¢-$1/bu. in profits to grow corn for 2012. Returns from growing corn in Iowa last year have averaged about $1.60/bu., but that corn is still being sold."
Historically, anything over zero is a good return for corn, because government subsidies have typically provided adequate profit incentive, even when the market has not, adds Hart. He notes that from 1972 to 2008, the return on a bushel of corn averaged -7¢/bu.
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