DES MOINES, Iowa (AP) – U.S Secretary of Agriculture Tom Vilsack says he isn’t worried about farmer profitability this year, when huge corn and soybean crops have pushed prices for the commodities below the cost of production.
Vilsack tells The Associated Press that many U.S. farmers have contracts that will pay $4 or $5 a bushel of corn and about $13 for a bushel of soybeans, so they should be OK.
He also notes that lower commodity prices will help livestock producers, who in recent years have struggled with the high cost of feed.
For those who won’t earn enough to cover their costs, he notes the farm bill offers aid so farmers can survive difficult years.
Vilsack spoke with the AP after touring a food processing company in Marshalltown with U.S. Representative Bruce Braley.