20 ¦ November 1998 Illinois Issues

Despite these near-record yields, the forecast for Illinois farmers is not good. Prices are low. Elevators still hold much of last year's harvest surplus. And foreign markets, especially Asian countries suffering from their own economic crises, have decreased their demand for Illinois agricultural exports.

Department of Agriculture Statistician Garry Kepley predicts that most Illinois farmers will lose money or, at best, break even in 1998. But, he says, "The best thing about two-dollar corn prices is two-dollar corn prices," explaining that low corn prices mean increased livestock feed sales and good conditions for ethanol production. "Illinois farmers are some of the best producers in the world," Kepley concludes. "Right now they just need some demand so they can continue to produce." 
Rosalie Warren

Illinois Issues November 1998 ¦ 21