ISU expert predicts farmers will do well in ’05

Last year many Midwestern farmers recorded all-time high net revenues. An Iowa State University extension ag economist says despite high fuel costs and uncertainty in livestock markets, they may do well again this year. ISU Extension specialist Darnell Smith says there are several reasons for the good year. He says 2004 was a very good year for Midwestern agriculture, but that was due to record yields for corn and soybean crops and good prices for livestock. Beef prices hit a record high, though a ban on any imports of cattle from Canada had a substantial impact. That ban has been ordered lifted and it’s only on “hold” because of a court order. Smith say farmers can’t count on record meat prices or bin-busting harvests every year. He says you can’t keep having record yields ever year and record livestock prices won’t last forever either. He says it’s going to be hard to replicate the records of 2004. Weather, of course, will be the biggest factor between now and harvest time in whether there’s another record crop.