Is corn the new king?

Cotton farming being replaced by corn fields

By Vershal Hogan (Contact) | The Natchez Democrat

Published Monday, July 16, 2007

VIDALIA — Corn is a popular crop this year, and perhaps for good reason. Its market value has doubled its historical levels this summer.

Part of that reason is an increased demand for corn products.

“Basically, the supply of corn is at a lower level than is normal because of increased consumption for additional markets such as ethanol production,” said Erick Larson of the Mississippi Corn Grower’s Association.

But corn’s popularity has had a positive effect on other crops, particularly soybeans and cotton.

“Demand for one crop has affected the supply of other crops,” said John Anderson, extension professor of agriculture economics at Mississippi State University.

There have been 93 million acres of corn planted nationwide this year, making the biggest corn acreage in the country since 1944, Anderson said.

“That’s having a tremendous impact on row crop commodities,” he said.

The reduction in acreage in other crops has caused everyone to adjust their expectations for future supply of those crops, thus driving up their expected value, Anderson said.

“We’ve seen a huge reduction in cotton acres, which has been one of the major cash crops for this area for generations,” he said. “That’s already beginning to impact some aspects of the cotton markets, such as cotton gins.”

The cotton market’s response has been to give the best cotton prices in several years, and while those prices are not historically stellar, they are the best in recent history, Anderson said.

Soybean prices are also the best they’ve been in some time for the same reasons, Anderson said.

While there may be profitable reasons not to buy wholeheartedly into corn, some farmers are just being cautious.

“Most farmers have the philosophy of not putting all of their eggs in one basket,” Adams County Extension Service director David Carter said.

Church Hill farmer Mike Guedon said he planted several other crops other than corn for diversification and crop rotation, but he isn’t sure the area has the infrastructure to handle all of the corn harvest.

“Even if you don’t have it sold, you’ve got to get it stored, get your truck unloaded and go back to get the rest,” he said. “What happens when the (storage) bins decide they’ve got enough?”

Corn is a good crop, but it’s no guarantee, Guedon said.

“If you don’t get the rain you need or have irrigation, you’re taking a certain amount of risk,” he said.