Stable Forecast for U.S. Crop Prices
According to Dr. Keith Coble, former chief economist for Senate Agriculture Committee Republicans and the head of the Agricultural Economics Department at Mississippi State University, U.S. grain prices and crop demand for 2017-2018 will likely show no major changes.
Coble spoke to workshop attendees during the American Farm Bureau Federation’s 2018 Annual Convention & IDEAg Trade Show about global crop trends and the U.S. farm policy outlook for the upcoming year.
Trends for 2018 will be similar to 2017, unless a major disruption occurs, such as weather or foreign market changes, Coble said.
Coble said, “We are really not seeing anything that is significantly moving the markets up or down in the short-term. Markets are going to see mostly sideways movement. Cotton is the most promising of the commodities.”
Coble addressed the outlooks on global and U.S. markets for each of the major crop markets separately – corn, soybeans, wheat, cotton and rice – predicting not much change will occur.
He also spoke about the future of crop insurance. He said, “The overall percentage of the farm bill taken up by the farm commodity program has diminished, because of the shift away from Title I programs toward crop insurance programs.”
The presentation concluded with audience questions about Coble’s opinion of the next farm bill and the North American Free Trade Agreement.