Tuesday, March 19, 2013

Is North Dakota Joining the Corn Belt?

According to a Reuters report this week, North Dakota was ranked number ten in U.S. corn production in 2012, its highest position to date. The rise in production was attributed to warmer temperatures, increased precipitation, and new seed hybrids that accommodate a more abbreviated growing season compared to the traditional Corn Belt states of Iowa, Illinois and Indiana. In addition, more corn is being planted to take advantage of higher prices that many attribute to the ethanol market. Since the Renewable Fuels Standard was modified to increase the ethanol blend percentage in 2007, corn prices have doubled. Farmers in North Dakota's Red River Valley will net $176 per acre of corn in 2013, compared with estimated returns of $122 for soybeans and $86 for spring wheat, according to a recent report. Read more

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