For the past several years, growers have focused on maximizing production. Hurt says, for the next few years, it will be about minimizing costs, “For the past several years, we have not had to worry too much about how much something costs, but now we are going to have to pay attention to the cost of production.” Hurt believes that farmers will be making adjustments to their operations to lower their production costs, “I think we will see a reduction in application rates, especially for nitrogen; seeding rates may be cut a bit; and any new technology will have to have a cost reduction benefit.” He also told HAT some growers are looking at less expensive non-GMO alternatives. He does not think, however, that most growers will be able to do much to reduce their biggest production expense: cash rent. He said it will likely be 2016 before cash rent prices will begin to come down.
The Purdue ag economist sees corn prices averaging in the $4 and soybean prices about $10 for at least the next two growing seasons. He said for 2015 the economics favor soybeans rather than corn.