Iowa farmers planting more corn

By Dave Franzman, Reporter

Tools

By Becky Ogann

Story Created: Mar 30, 2007 at 4:41 PM CST

Story Updated: Apr 2, 2007 at 11:32 AM CST

LINN COUNTY - Farmers will really crank up the corn planting machinery this spring. Final USDA estimates show farmers nationwide will plant 90.5 million acres of corn. That's the most in 63 years.

Iowa farmers surveyed will boost corn acres by 10 percent. And the huge jump in production could ease some fears that more corn for ethanol will automatically mean higher food prices.

Like many farmers, Larry Jons is doing projects and fixing machinery while he waits for warmer weather to plant. And with ethanol demand pushing corn prices past $4 a bushel, it's no surprise farmers will put more corn in the ground this spring.

"Farmers are good businessmen. They'll go out and plant what they can to get the most money," said Larry Jons, Linn Co. Corn Growers Association.

More corn will mean fewer soybeans in fields, at least a 10 percent drop in Iowa. Farmers who ordered seed corn late may not get their first choice of varieties because supplies are tight. But a sellers' market for grain offsets any negatives.

"It's kind of exciting to watch the various markets because users are competing for our grain. It's a demand driven market, and we haven't seen that for several years," said Denny Sejkora, Linn County farmer.

The USDA predicts only a modest increase in food prices this year despite the record demand for corn. Farmers say more production should help and price hikes can come from many things besides the cost of grain.

"You can get 38 boxes of corn flakes out of one bushel of corn. At four dollars a bushel, that's only three to four cents worth of corn in that box of corn flakes," said Jons.

Producing more corn for ethanol is not guaranteed to do anything about the price at the pump. That's because ethanol for fuel tends to follow the price of oil. If oil prices go up then the price of ethanol will too.

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