Cheap oil may be changing the face of corn farming.
As prices drop, producers may have to spend less on corn and other crops, which will mean more corn will be sold for a lower price.
That could cause prices to drop even lower.
“We’re definitely seeing an increase in corn prices in 2018,” Kevin Tamblyn, an economist with the Corn Growers Association, told ESPN.
“That’s going to be good for consumers and it’s going, in our view, to boost the corn industry and the price of those crops.”
The USDA’s Cornucopia Institute is estimating the average cost of a bushe to produce 1 bushel of corn has risen from $3.75 to $5.30 since last year, with a 2.5 percent decrease in corn yields.
Corn prices have also fallen in recent years, although they were lower than some other crops at the time.
Tamblyn said there are plenty of other crops to sell and that the price drop for corn is expected to continue, with producers adding more and more corn to their plots.
He said the drop in prices is unlikely to last.
“We think prices are going to rise, especially in the short term,” he said.
“I think corn is going to continue to be a very important commodity in the food supply.”
The USDA doesn’t keep a price for corn on its website, but analysts and farmers agree the price may have fallen.
While prices for corn have been declining since the summer of 2018, the price fell significantly in 2018 as prices for other crops have been higher.