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Farmers adjusting to high yields and low prices for crops

For farmers in Illinois and across the United States, high yields are being met with a sluggish price tag for crops. Mike Doherty, senior economist at the Illinois Farm Bureau, said prices are being driven down by a more competitive market from foreign countries, especially South American nations Brazil and Argentina.

“Increased competition because of increased investment overseas is part of it but they are also increasing both their acreage and their yields.” explains Doherty.

Doherty said the drops could lead farmers to decrease acreage slightly. He also said farmers are putting off equipment purchases, paying down debts and reducing interests. Risks farmers might take include opting for a cheaper seed and hoping for the best, Doherty does on to say;

“Farmers may not choose the optimal seed but rather will select a cheaper seed hoping that the benefits of the more expensive seed wont have been necessary after all.”

Amid uncertainty over its trade deals, Doherty said farmers hope the U.S. stays in its agreements because of the stability that brings.

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