Farmers outside of the current drought zone stand in a position to reap massive profits on nationally faltering crops. For those farmers who aren’t experiencing the drought, the mild winter and the early spring could prove godsends, allowing them to plant earlier and harvest more crops than usual.
As it currently stands, 28 states are experiencing severe to extreme drought (with a drought epicenter in the southern Midwest). The lack of rain, combined with record-breaking heat, is withering crops and doing considerable damage to the agricultural sector, particularly to farmers in the drought stricken Corn Belt.
The drought comes at a particularly bad time for farmers, who had planned on planting and harvesting the nation’s largest corn crop this summer.
For those farmers outside of the drought zone, however, corn could prove to be an unusually lucrative crop. The damage done to most of the nation’s corn supply will likely drive up corn prices (leading to increased food costs for American consumers). Corn prices have already increased to $8 a bushel.
That could translate into record profits for the lucky farmers not sweltering in the drought zone. These profits, however, will come at the expense of Midwestern farmers, many of who could face up to 80 percent crop losses.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmloans.com.
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Written by: Justin Ellison / Farm Plus Staff Writer