Benson Hill reposted this
Today is day 3 of the Farm Progress Show in Boone, Iowa. It has been a hot one as are most late August days. This year is challenging for US farmers as commodity prices have fallen significantly while input prices remain high. Along with relatively high interest rates, farmers have much less to invest in new equipment and practices. From farmdoc at the University of Illinois Urbana-Champaign: “Current levels of futures contracts suggest that appropriate budgeting prices for 2024 crops production are $4.00 per bushel for corn and $10.50 per bushel for soybeans. Those prices would result in low returns in 2024, far lower than the last low-price period from 2014 to 2019. Much higher costs cause lower 2024 returns. Those budget price forecasts could change with unforeseen events, as does occur in agriculture. Over the next several months, estimates for returns and incomes will solidify. Still, it seems prudent to plan for much lower prices.” We at Benson Hill work to provide farmers with value-added soybeans with optimized nutrient profiles that provide value to food and feed end users. This earns the farmers a premium over the commodity price. 2025 programs will be rolling out over the next few months.