You can expect “substantially lower” revenue for your corn crop this year versus last year. That’s according to Purdue ag economist Dr. Michael Langemeier on the latest Purdue Crop Chat podcast, found now at HoosierAgToday.com.
“Price projections for ’23-‘24 marketing year for corn are 25% below the price for ’22-’23. So, even with higher yields, you’re looking at some substantially lower gross revenue, and net revenue for that matter, for corn.”
Langemeier adds that it’s a little less ugly for soybeans—15% below the ’22-’23 price.
“You tie all that together, my projections for net margins, it’s going to be similar to 2019 rather than similar to what we saw in ‘20, ’21, and ‘22. In particular, it’s down substantially from what we had in ‘21 and ‘22.”
The Purdue Crop Chat broke down Friday’s USDA Crop Production and WASDE reports with Langemeier and Jim Mintert from the Purdue Center for Commercial Agriculture, along with Purdue Extension corn and soybean specialists Dan Quinn and Shaun Casteel.
Langemeier also discussed breakeven prices for ’24, where he says there is some good news.
“We’ve seen some drops in fertilizer prices, particularly nitrogen. If that holds, you’re looking at a reduction in breakeven prices for corn of 40 to 50 cents.”
Which Langemeier calls substantial. Hear more from him and others on the Purdue Crop Chat, available now below or wherever you listen to podcasts.
