The USDA report issued this week shows the number of corn acres planted nationally is up — including in Iowa, where a record 14-million acres has been planted. The increase corn acres are in response to increased prices and demand caused by ethanol use. Iowa Corn Promotions Board member, and corn farmer Darrel Alexander of Sidney, isn’t sure what impact the increase in corn acres will have on the price.
Alexander says he can’t answer that question, as last year he said he never thought corn would go over three-dollars a bushel. Alexander says he thinks corn with stay in the three to three-dollars-and 50 cents a bushel range.
Anamosa farmer Gary Edwards agrees. Edwards says the price may go down a little bit in the short term, but in the long term go back up to the three to three-dollars-and 50 cents a bushel range. He says they’re still going to need to build capacity as ethanol plants come on-line, and are not out of the woods for growing too much corn.
Alexander says ethanol isn’t the only factor driving demand. Alexander says he raises a lot of white corn, and there’s been an increased demand for it, so the fuel market isn’t the only driving force. And both say the export market remains strong too.