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USDA boosts corn, soybean harvest to new records

By WTOP Staff

DAVID PITT
Associated Press

DES MOINES, Iowa (AP) — The nation’s corn and soybean farmers will bring in by far the largest harvest ever this year, the U.S. Department of Agriculture said Thursday in a new report.

Corn farmers are expected to harvest nearly 14.4 billion bushels of corn, up from last year’s 13.9 billion bushel record. The yield of 172 bushels per acre is significantly higher than the previous record set in 2009 of 165 bushels per acre.

Record yields will be set in 18 states, the USDA said, and 10 states including Illinois, Iowa, and Nebraska, the top three producers, have the highest number of ears per corn stalk ever.

A massive harvest has been expected this year as adequate rain and cool temperatures made for favorable growing conditions. The expectations have driven corn and soybean prices significantly lower, but that isn’t expected to make much of a short-time difference in consumer food prices. However, since the grains are staples in livestock feed, lower prices could eventually lead to a decline in the cost of beef, pork, chicken and milk.

The soybean harvest estimate also moved upward to a record of 3.9 billion bushels. The previous record was 3.4 billion bushels in 2009. The per-acre yield is now estimated at record 46.6 bushels per acre, beating the 2009 record of 44 bushels per acre.

After meeting all current demands for corn — including exports and use for animal feed, ethanol and food ingredients — the USDA estimated 2 billion bushels of corn would remain in stock. That’s the highest ending stock in a decade.

The report estimated ending soybean stocks at 475 million bushels, the highest since 2006.

Another positive of the USDA report is that it also predicts record demand for corn and soybeans, said Chad Hart, an agriculture economist with Iowa State University.

That means farmers must keep a close eye on the markets and watch opportunities to sell, he said. Slight movements of pennies per bushel can make a difference in the year’s income.

Despite the strong forecast, concerns have grown in recent days that early cold weather is creeping into the upper Midwest too soon as some crops are maturing later this year because a wet spring delayed planting in northern states.

“It’s a huge concern,” said Ryan Buck, who grows corn and soybeans on about 1,000 acres near Red Wing in southeast Minnesota. “We need all of three weeks yet of warm weather. If we can string together some good weather here the potential is definitely there. The crop looks good, but we just need time.”

A hard freeze, temperatures at 28 degrees or below for at least four hours, causes significant damage to crops.

Most of the concern is focused on Michigan, Minnesota, North Dakota, South Dakota, and Wisconsin.

Iowa remains the top corn producer, expecting 2.4 billion bushels, up 13 percent from last year. Production in Illinois is estimated to be 9 percent higher at 2.3 billion bushels and Nebraska remains third in production with a 1.6 billion bushel estimate, down 3.5 percent from last year’s crop.

For soybeans, Illinois is the top producer, with an estimated crop of nearly 563 million bushels, up 21 percent. Iowa is second highest producer with 512 million bushels, up 24 percent from a year ago, followed by Minnesota at 312 million bushels, a 15 percent increase over last year.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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