Iowa Corn Profits Projected Lower for 2012

Chad Hart, Iowa State University agricultural economist, said the outlook for corn profits for state farmers doesn't look as good as it did in 2011.

“In Iowa, we’re projecting season-average prices to range between $5.30 and $5.40/bu., and we’re projecting inputs costs to be about $4.40/bu. So, if that holds true, the market in Iowa will be offering 90¢-$1/bu. in profits to grow corn for 2012. Returns from growing corn in Iowa last year have averaged about $1.60/bu., but that corn is still being sold,” Hart said.

Economic uncertainty continues to weigh on corn overall corn profits, in Iowa, and elsewhere in the U.S. Prices could fall as low as $3 a bushel, but could rise as high as $7 a bushel, according to Hart.

All factors inputed, I would bet on a more downward movement in price than upward for corn in 2012.