Nearly one year ago, Northern Plains farmers were preparing for a reduction of exports out of the Pacific Northwest. NDSU Extension crops economist Frayne Olson says one year of experience and domestic demand will help local farmers this year. “Two things have happened: farmer selling hasn’t been as heavy and the logistical system has a way to work around alternative channels,” says Olson. “The other dynamic that will be different this year are the problems in the Eastern Corn Belt. That will have a heavy impact on the flow of corn.” Olson says the potential for lower soybean yields and lower planted acreage in the Eastern Corn Belt could cause more soybean movement, too. “That’s a non-traditional way of moving soybeans. It doesn’t mean prices will suddenly go much higher or basis levels will suddenly get better than before,” he says. “I don’t see elevators pulling their bids to prevent farmers from delivering this fall. We have a plan in place. It’s still not going to be much fun. It will cost money, but at least we know what we are doing and are more comfortable on managing the problem.”
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.