While opinions vary on the impact the drought will have on farm equipment sales for the rest of this year and next, most analysts agree the lower yields will result in higher commodity prices. This combined with the wider use of crop insurance is likely to blunt a major falloff in ag machinery sales in 2013.
In its November 9 World Agricultural Supply & Demand Estimates report, USDA once again revised 2010-11 corn yields down, but raised its pricing by 4% year- over-year.
Media coverage, burgeoning ethanol demand and the drive by production agriculture to meet a self-imposed goal of 300-bushel-per-acre corn yields by 2030 — to meet the world’s projected population growth and growing demands for higher protein diets — is driving increased awareness of twin-row cropping methods.
Two years ago, the U.S. Congress mandated a huge increase in ethanol use that took corn production to new highs and provided enormous incentives to invest in ethanol production.
Each monthly issue of Ag Equipment Intelligence is like getting one-on-one personal advice from the world's most trusted ag equipment industry experts. Advice that hasn't been watered down or distorted by outside influence, providing the latest and most insightful farm equipment analysis. AEI explores where the ag equipment industry is going — not just where it's been. No filler. No bias. No conflict of interest. You can access the PDF issue archive by clicking here.
Precision ag pioneer Al Myers is a member of the Farm Equipment Shortline Legends Hall of Fame 2024 class. It’s been almost 35 years since the Ag Leader founder introduced the groundbreaking Yield Monitor 2000.