At least one prognosticator is suggesting that “due to an unusual confluence of factors” the price of corn could double to $8 per bushel in the next few years. In the April 9, 2018, issue of Barron’s, Simon Constable says these factors include “declining output, an ethanol-led demand surge in China and likely brutal weather.” (Corn Prices as High as an Elephant’s Eye?)
Farm equipment manufacturers and dealers who reaped the benefits of the explosive growth of corn ethanol in the past decade with skyrocketing equipment sales, probably shouldn’t count on anything near that level of growth in the decade ahead.
Both U.S. ethanol prices and production fell in 2012 compared with the previous year. And the chances are good that it won’t get a whole lot easier for producers in the year ahead.
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.
In this episode of On the Record, brought to you by Associated Equipment Distributors, we take an initial look at the Dealer Business Outlook & Trends Report and what dealers are forecasting for 2025.