20% below what it was predicted to be.
Check it out:
Even before the current farm bill was adopted, we shared our concern that a $4 plus plateau in corn prices, which was being widely predicted, was in all likelihood no plateau at all. In our November 15, 2013 column (http://tinyurl.com/n6jvrvh), we wrote, “According to the new plateau or new price era hypothesis, the season average prices of corn paid to farmers which broke the $4.00 per bushel price barrier in the 2007 crop year will now average or plateau at about $4.50 per bushel, largely due to the growth of the corn-for-ethanol market and other demand increases. Corn used for ethanol increased from 2.1 billion bushels in 2005 when the price was $2.00 to the 5 billion bushel level in 2010….