By Paige Harden, The Republic Features Editor

Experts anticipate a bonanza for corn farmers this year.

With a handful of new ethanol plants in Indiana, the demand for corn has increased by 12 percent from last year, said Chris Hurt, Purdue agricultural economist.

Hurt said the state will need approximately 950 million bushels of corn this year, up from 850 million needed last year.

Most of the additional corn, Hurt said, must come from Indiana.

"All of the states around us are seeing the surge as well," he said. "This is a big wow in the sense that in agriculture we normally see relatively small changes in our demand."

Hurt said the increased demand could mean major profit increases for farmers.

"Many are saying this could be the best year in 30 years for agriculture crop farmers in Indiana," he said. "It's exciting to see the opportunity for the crop producers and for there to be a profit incentive. They have had many years of very little margins and uncertainty."

Farmers could see as much as $200 an acre more for corn than last year, Hurt said.

To produce the additional corn, there will be a major reduction in soybean acreage.

"We have been about 50/50 in soybeans and corn," Hurt said. "We are now going to see more corn and moving away from rotation of one year of beans and the next year in corn."

Reducing soybean production this year is possible because of a worldwide surplus, Hurt said.

"We will begin to get a tight supply on everything else," he said. "Other crop prices will have to compete with corn. We could see an increase of 4 percent in food prices rather than the usual annual increase of 2.5 percent."

Hurt said the major influx of corn has potential for problems:

  • Corn is the most intense crop.
  • Corn uses the most input.
  • Corn has the highest yield and the most to handle.
  • Corn uses the most fertilizers, pesticides and nitrogen.
  • Corn causes the most soil erosion.

    "Less corn rotation can lead to an increase in certain diseases and insect pests," said Mike Ferree, Purdue University-Bartholomew County extension educator.

    "We have a science to deal with these, but we will have to be careful that we are good conservationists and good stewards of the land," Hurt said. "Farmers should not get caught in the allure of the profit incentives."

    So much corn could create a hectic planting season, Hurt said.

    "Corn has a very narrow window for optimum planting: from mid April to May 20," he said.

    "Indiana farmers are going to be planting 12 percent more acreage in the same window. That probably means increasing machinery capacity and people power. If possible, farmers will be running their equipment 24 hours a day."

    If the weather or yields are bad, Hurt said, all could be lost.

    "There are a lot of big 'ifs,' he said. "Will the market really be as good as we expect? Will the yields be as high?"

    Farmers also should be prepared for increased input costs, including cash rent.

    "If I own the land I am going to say 'I want my percentage of that increase,'" Hurt said.

    Corinne Alexander, Purdue agricultural economist, said farmers also must consider where they will store their corn after harvest.

    "If you don't have on-farm storage you don't have a lot of marketing flexibility," Alexander said.
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