The price of corn has plunged to the lowest level since 2010.
The Star Tribune reports that the supply-and-demand economics of agriculture mean that this year's good weather has made corn plentiful, which has driven prices down. Corn declined to a 34-month low Monday, according to Bloomberg News, which reports that farmers are on target to harvest a record 13.95 billion bushels, 29 percent more than last year.
Corn futures for December delivery fell 0.7 percent to settle at $4.61 per bushel on the Chicago Board of Trade. A Minnesota farmer’s cost of producing a bushel of corn rose from $3.36 in 2010 to $4.52 in 2012, according to the University of Minnesota’s Center for Farm Financial Management.
Agriculture has been a big bright spot for the Minnesota and Midwest economy in the past few years. Minnesota farmers posted their best year in decades in 2012, with median incomes surging 50 percent over 2011, according to a report from University of Minnesota Extension and Minnesota State Colleges and Universities (MnSCU).
There's concern that farmers may have taken on debt for land and equipment during boom times and may have difficulty covering those costs with this year's leaner outlook.