Farmers are worried about the future after the collapse of the Corn Belt in the United States, with some warning the global economic crisis will force many to move to more affordable regions.
Key points:The US agricultural industry has seen a decline in both volume and value since last yearThe Corn Belt region saw a massive reduction in the number of farms it produces as a result of the global financial crisisThe US is the third largest producer of corn in the world, but the Cornbelt has been hit by a downturn in the global economy.
There are now more than half a million farms operating in the Corns, the largest group of which are in Kansas.
But the number is shrinking, with the Corn Bowls losing their biggest producer and the Great Plains losing most of their farms.
“The global economic downturn has certainly had a big impact on farmers,” said Richard Gies, a Corn Belt farmer from Kansas.
“Farmers have had to make a lot of hard decisions.
We’re just in a bit of a limbo.”
It’s just like the global recession has affected other sectors, but farmers are not seeing the impact of it yet.
“I don’t know how long it’s going to last but I’m just trying to stay optimistic.”
What is the Corn belt?
A Corn Belt is a region of the US, western Mexico and parts of southern Arizona, Nevada and Colorado, that includes the states of Texas, Oklahoma, Kansas, Iowa and Nebraska.
It is the most populous agricultural region in the US with more than 2.6 million people.
Farmers from the Cornlands have already seen their share of the country’s agricultural exports drop by 40% in the last two years, according to data compiled by the US Bureau of Labor Statistics.
“We’ve seen the price of wheat drop by 30%, and we’ve seen soybeans drop by 50%, and so on,” said Gies.
“So when that happens, the whole world is losing out.”
The global downturn is expected to see a major drop in corn prices this year.
“Corn futures are down by a lot, from $12 per bushel to $6.60, and that’s been happening for a long time,” said David Sirota, a professor at the University of Kansas.
The price of corn has been trending lower since late last year, after a sharp drop in February and March, when the US saw its first crop freeze in decades.
“But it’s not just corn that’s affected, the prices of everything that we produce is down,” Mr Sirotas told ABC News.
“When prices are lower, farmers are less likely to buy as much of the product they would otherwise.”
They’re less likely, because of the cost of the products.
“The Corn Bowl is the largest of the four Corn Belt states and includes the state of Oklahoma.”
There’s a huge impact on the farm and the impact on our business and the fact that the Corn Bowl is losing money,” said Mr Siboni.”
You have a lot more people in the farm than they did a few years ago.
“Mr Sibori said he is now considering selling his farm, which is one of the last remaining large farms in the area.”
Now that the price has dropped by 20% and I’ve lost everything I had, it’s just very difficult,” he said.”
A lot of people are thinking about selling their farm, because they have to be looking at a lot less money in the coming years.
“Mr Gies said the price decline is “not going to be a one-off”.”
We’re going to see prices going down and it’s definitely going to have an impact on people,” he added.”
What I would like to see is for farmers to see that it’s an opportunity for them to grow and expand their business.