The days of record high corn prices are gone, at least for now, and they’re only going to continue their decline, according to projections released this week by the U.S. Department of Agriculture. (PDF)
You can pin part of the blame on the 2012 drought, when corn hit an all-time high of $8.31 per bushel. The dry conditions made corn a limited commodity.
With the price of farmland at record levels across the Corn Belt, many farmers have been renting acres to plant. Now, with the price of corn and soybeans in free fall, farmers that depend on renting risk big losses if they’re unable to negotiate lower rents.