Ohio corn farmers unsure of planting plans amid volatile market

Ohio's corn farmers are unsure of their planting plans due to uncertainty in the market, and after a roller-coaster 2008.

 

Corn futures peaked at US$7.88 in June before plunging to US$3.85 in mid-November. Prices for fertilisers and fuel, which are critical to farm operations, also increased sharply.

 

Although fertiliser and fuel costs have since cooled down alongside commodity prices, farmers are wondering if they can manage to break even this year.

 

"We've seen prices come back significantly. So now, prices are possibly below production costs because we have these significant prices in input costs,'' said Brent Porteus, president of the Ohio Farm Bureau Federation.

 

The production of an acre of corn can cost US$450-500, said John Davis, president of the Ohio Corn Growers Association.

 

"If corn is $4 and we had a year like this year, you don't break even," Davis said.

 

Although corn prices were high in early summer, it was hard to sell safely that early as farmers do not know what and how much they are going to produce, said Davis.

 

Also, issues with fertilisers may further hinder planting plans. A price drop in fertilisers may not help farmers as some retailers bought the products when it was more costly.

 

With the high cost of fertiliser and average corn prices, many producers are waiting to buy fertilisers, which could cause manufacturers to reduce production, said Davis.

 

"There is a backlog of fertilizer in stores because producers haven't been buying this fall," he said.