High yields, high prices should mean good times

We may have put more corn in the bin last year, but for some farmers, it took all winter.

This year's crop is on track to be the second largest in Nebraska history, according to the U.S. Department of Agriculture, and warm, dry fall weather is bringing it in quickly.

By happy coincidence, prices are up a dollar a bushel in the last week, and may hit $6, according to analysts, because of high demand in Asia.

According to the Nebraska Corn Board, Cornhuskers will produce 170 bushels per acre, for a total of 1.51 billion bushels of corn, second only to last year's bumper crop which came in at the rate of 178 bushels an acre for a total of 1.58 billion bushels.

Nationally, the USDA estimates yields at 155.8 bushels per acre, below last year's record of 164.7. If the estimates prove true, the U.S. crop will come in at 12.7 billion bushels, the third-largest yield on record.

Multiply that by $6 per bushel, and it would be a good year for farmers, indeed.

Although feeders are hurt by higher grain prices, cattle prices are up 20 percent and hogs 50 percent from last year, resulting in profitable times for both grain and meat production sectors, an unusual condition.

And, the cost of inputs like seed, fuel, fertilizer and chemicals never seems to stop rising.

Still, most farmers know good times won't last forever, so let's hope they use the extra income to reduce debt and put themselves in a better position to weather the next low point in the price cycle.