Nebraska Corn Production Up, Soybeans Down
The most recent USDA production estimates indicate Nebraska corn production will equal 1.81 billion bushels, up 1 percent compared to last year. The average corn yield is estimated at 186 bushels per acre, 6 bushels less than last year.
Nebraska soybean production is projected to be less this year at 277 million bushels, or 15 percent less. The average yield is forecast to be 56 bushels per acre compared to 58 bushels last year. The lower soybean production stems primarily from fewer acres being planted this year—planted soybean acres were 650,000 acres fewer this year.
What do these latest production estimates mean for farmers’ bottom lines? The estimated midpoints for average farm prices in the current marketing year on both crops were higher in the most recent World Agriculture Supply and Demand Estimate Report (WASDE). The midpoint price for corn increased 20 cents to $3.80 per bushel and the midpoint price for soybeans increased 50 cents to $9.00 per bushel. Using these prices, and USDA production estimates, farmers’ corn revenue would be $6.9 billion for this year’s crop, up 7 percent over last year. Farmers’ revenue for soybeans, $2.5 billion, would be off 9 percent. Combined, the estimated farm revenue for these two crops would be 2 percent greater than last year. At the present time, Nebraska cash grain bids for corn and soybeans are below the midpoints projected by USDA. The marketing year for the 2019 crop started September 1, so prices will need to increase over the remainder of the marketing year to realize the estimated increased revenue.