2004-8-30
This is Gwen Outen with the VOA Special English Agriculture
Report.
Late summer is when many farmers begin to know what size harvest
to expect in the fall. And it appears that American farmers can
expect several major crops to be at or near record levels this year.
The Agriculture Department says corn production is expected to
reach almost eleven thousand million bushels. Each bushel is a
little more than thirty-five liters. The United States is the
largest producer and exporter of maize. A harvest this big would be
eight percent larger than last year's levels, which set a record. It
would also represent greater productivity. Farmers expect a record
yield, or the amount produced per hectare.
The soybean crop this year is expected to be the second largest
ever recorded. It is expected to be nineteen percent larger than
last year. The soybean yield is also expected to increase.
Cotton farmers are also expected to have a good year with an
eleven percent increase in their harvest. They are expected to
produce twenty million bales of cotton. One bale weighs about two
hundred twenty-seven kilograms.
Big harvests may seem like good news for farmers. Experts credit
good weather conditions and improved seed for higher farm production
and yields. But there are the laws of supply and demand. If supply
increases, unless demand also increases, prices can drop. And prices
have been going down through the summer.
In April, the price of corn futures reached their highest level
in years. But since April, prices of corn futures on the Chicago
Board of Trade have fallen by about thirty percent. Futures are
financial tools that generally do not involve the exchange of real
goods, but they can affect prices. Farmers or investors use futures
to protect against changes in the market.
Prices for soybean futures have also dropped from highs in April.
The United States Department of Agriculture says China may decrease
its soybean imports. China is the world's biggest importer of
soybeans. At the same time, Argentina, Brazil and Paraguay -- all
big South American producers of soybeans -- have surpluses.
Lower prices and too much supply may not help farmers. But they
do help companies that buy from farmers. Lower prices can also
increase exports.
This VOA Special English Agriculture Report was written by Mario
Ritter. This is Gwen Outen.