The cumulative effect of high natural gas prices could result in corn and soybeans both selling for $3/bu, says an Ohio State University ag economist.
That might happen if farmers shift enough corn acres to soybeans, says Allen Lines.
"This might be the year when corn prices and soybean prices are equal," he says. "This would be a historic reversal, because bean prices are usually 2 1/2 times as great as corn prices."
Where anhydrous ammonia is available, prices may be as high as $420/ton, and 28% solution may be about $200/ton, he says.
"One farmer said he secured all his nitrogen last July, and that he was considering putting it up for sale to the highest bidder and then planting all soybeans."