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Media Credit: Jennifer Johnson A Case IH model 2588 Axial-Flow Combine sits among other tractors awaiting purchase at Vergennes Equipment. Even with the corn prices at a higher rate than before, equipment sales have not seen a decrease.

As people consume corn at record rates, recent increases in corn prices have consumers and farmers worried about empty pockets.

Citizens nationwide consumed more than 10 million bushels of corn in 2007, according to the USDA Feed Grains Database. On average, each citizen used more than five pounds of corn products every day.

Recent increases in corn production costs have driven the price of corn to a record high of more than $7 a bushel. Those affected have cited several factors, including the weakened value of the dollar, speculations made by investors, the high price of fuel and recent floods in the Midwest.

Richard Borgsmiller, president of the Jackson County Farm Bureau Board of Directors, farms roughly 600 acres near Murphysboro.

When similar crop inflations occurred in the late 1980s, Borgsmiller said, speculators kept investing more and more money into the market because the returns remained great. However, this eventually led to inflation that crippled the crop market, he said.

"The volatility is enormous," Borgsmiller said. "We're treading water."

As corn prices rise, so do corn production costs, said Mike Lofton, a full-time farm equipment dealer, part-time farmer and Agriculture Economic SIU graduate from Cobden.

Fertilizer is almost three times as expensive as in years past, he said. With the current situation, Lofton said he is unsure about the industry as well as the economy.

"It's a gamble," he said.

Jarrett Nehring, director of field operations at University Farms, said the increase is also felt by the university. While the 250 acres of corn farmed at SIUC each year is primarily used to feed the university-owned cattle and swine, Nehring said the increase in production costs are affecting operations. Like others, Nehring also blames the high costs on transportation and energy costs.

"Any food commodity, you've got to get it from point A to point B. The fuel prices and transportation is what's hurting the most," Nehring said.

Tom Rosenthal, swine manager at University Farms, said the recent increase in corn prices have also made an impact on other farm operations. Rosenthal said 70 percent of the cost of raising swine comes directly from feed costs.

"We've cut our herd almost in half due to the price of corn," Rosenthal said. "It's harder for the little guy."

But as the cost of crop production has risen considerably in recent years, the sale of farm equipment remains steady, said Bugs Iman, assistant parts manager for Vergennes Equipment. The farm supply store, located just north of Vergennes, sells everything from combines to riding-lawnmowers.

Justin Lange can be reached at 536-3311 ext. 258 or jlange@siu.edu

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