Corn Bounces Back

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by: Cindy Zimmerman4
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Word Count: 306

Corn Bounces Back
Cindy Zimmerman
August 12, 2008

The

USDA August crop production forecast is a demonstration of just how
resilient American farmers can be. Despite June’s severe flooding in the
Midwest, U.S. farmers are still on pace to produce the second largest corn crop
in history at 12.3 billion bushels.

Much of the credit must
go to Mother Nature for having pity on the farmers she had just belted with
flooded fields, blessing them with almost picture perfect growing conditions for
the past month.

That pushed the yield
forecast up to 155 bushels per acre for corn, which would be the second highest
on record behind 2004.

“This is great news not
just for corn growers, but for everyone,” said

National Corn Growers Association President Ron Litterer. “We’re committed
to meeting all needs and this estimate indicates we are growing the corn this
year to do so – and provide a solid carry-out into 2009.”

Indeed,

today’s World Agriculture Supply and Demand Estimate from USDA increases the
use of corn expected for both feed and ethanol. Feed and residual use is raised
100 million bushels with the larger crop and lower expected prices. Ethanol use
is raised 150 million bushels as increased supplies and lower prices are
expected to improve plant operating margins and capacity utilization rates.
Exports are unchanged while ending stocks for U.S. corn are projected at 1.1
billion bushels, up 301 million bushels from last month.

Renewable Fuels Association president Bob Dinneen says this goes to show
that America’s farmers can produce both food and fuel. “Their historic response
should go a long way in silencing those Chicken Littles who sought to capitalize
on the devastation of this summer’s flooding to undermine and abandon America’s
movement toward cutting our dependence on foreign oil,” said Dinneen.

I’m not sure it will
silence those “Chicken Littles” but it sure makes me proud of our farmers.