Large crop but low prices for 2012

Posted by IronPlanet on Feb 27, 2012 2:49:00 AM

A new report says that prices for crops are expected to fall this year, despite farmers planting a record amount, reports Reuters.

In terms of the eight major crops, 2012 is expected to be the largest year for planting since 1997. However, corn prices are expected to fall by 20 percent compared to their high levels last year, and several other key crops will be down as well.

"Certainly the high prices that we saw last year have prompted a global production response for most commodities," USDA Chief Economist Joe Glauber told the news source. "This should help relieve some of the volatility that have roiled markets over the past five years and improve prospects for future livestock expansion."

While the high prices last year were what prompted many farmers to plant large crops for this year, it now appears that they'll need the extra food in order to make the same amount of money they have in years past. Overall, farm income is expected to decrease by 11.5 percent this year.

With farmers projected to make slightly less money this year, they may need to keep expenses down. One way to do this is by buying used agricultural equipment online. The auction website IronPlanet gives buyers access to a wide range of equipment backed by full inspection reports.

Topics: Industry Headlines