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April 1, 2013

Poor corn crop would close meat, poultry plants, economist says

If this year’s corn yields drop much below the base of 145 bushels per acre, it will force some meat and poultry plants that rely on that grain for feed to close, said Dr. Thomas Elam, president of FarmEcon LLC. Elam spoke on this topic during the March 26 Farm Journal/WATT Grain and Meat Outlook Webinar, which can be viewed on demand at http://www.wattagnet.com/157129.html. He said that if the base forecast were to hold true, the average U.S. price for corn would be around $7 per bushel. Under that scenario, there would be some room for expansion of protein consumption, and the profitability of meat and poultry production would improve. However, if yields dropped as low as 130, Elam said, the picture would be grim.  Read More

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