
Corn had been piling up while patience had been thinning. But thanks to misfortunes of some farmers’ corn harvests, some others are enjoying higher prices. And they are rushing to sell, according to this story from Reuters, which shares how an Iowa farmer and another one from Ohio reacted when they found out how corn prices had risen.
Corn futures hit a one-year high this month and have increased 10% over the past month. That followed updated numbers from the USDA that showed that corn production fell 3% in 2024 compared to 2023.
Soybean production fared better and increased 5% from the previous year.
U.S. corn producers also hope that their $3 billion a year in sales to Mexico, their largest export, can continue without the drama that has been taking place since 2020. Mexico had wanted to ban imports of genetically modified corn that was used for human consumption and eventually ban it for livestock, too.
Most of the corn purchased by Mexico from the U.S. is used to feed livestock.
Mexico had claimed that GMO corn could have negative health effects but had not presented proof of that allegation to the U.S. In December, the U.S.-Mexico-Canada free trade agreement’s panel of experts disagreed with Mexico’s claims and ruled that the country should continue to accept the U.S. corn.
RELATED: This Associated Press article includes background on Mexico’s dispute with the United States over imported GMO corn and explains why Mexico will honor the ruling regarding the corn that it has been receiving from United States producers.
Higher corn prices and continued corn demand from Mexico have not been enough to stop agricultural company layoffs. Kinze Manufacturing – headquartered in Williamsburg, Iowa – laid off additional workers and has now idled nearly a third of its workers since August.
Kinze produces planters, grain carts, and high-speed tillage equipment.
RELATED: This story from KCRG-TV in Cedar Rapids, Iowa, details the most recent layoffs at Kinze Manufacturing in Williamsburg, Iowa.
Next month, John Deere will lay off 75 workers at its plant in Ottuwma, Iowa, according to the notice that it gave to the state. The company cut more than 2,000 jobs in the United States last year, according to Investigate Midwest’s research. Iowa, Illinois, and Kansas suffered cuts of 4,502 workers since 2015.
The company has announced plans to increase production in Mexico but claims that is not a factor in Americans losing their jobs.
John Deere faces new lawsuits from attorneys general in Illinois and Minnesota plus the Federal Trade Commission. The complaint alleges that Deere’s practices for decades have limited the ability of farmers and independent shops to repair the company’s equipment.
That forces farmers, according to the complaint, to use Deere’s authorized dealers for repairs. The practice boosts profits for Deere and increases costs for farmers, the lawsuit alleges.