Grain producers who are marketing their crops are now experiencing very favorable commodity prices. Current bids for corn in our area are near $3 per bushel and soybeans are near $9. Those quotes are for freight on board at the farm. It has been several years since commodity prices were at these levels.

Some market analysts predict prices will continue to creep higher, while others are cautiously optimistic.

Several factors could change the market or have set the stage for the current market. Consider that avian influenza is widespread in Europe and has been confirmed in Pennsylvania and the states on the Delaware, Maryland and Virginia peninsula.

Poultry is a good market for corn, but if a major avian outbreak occurs and flocks are destroyed, the corn market will see some effect, at least for the short term.

In the case of soybeans, the underlying issue might be the crop that was harvested in South America. There are many factors, none of them local, that drive the commodity markets up one day and down the next. The only sure things are that no one can positively predict futures prices, and prices are going to change.

Those grain producers who sold production at harvest time because of no available storage facility now realize that in a year like this, grain storage would pay for itself.

Now would be the time to consider a farm storage facility loan for the purchase and construction of new grain bins, silos and related equipment. The facility loan program contains the following provisions:

Seven-year open-end term

3.75 percent interest rate

15 percent down payment

New bins and silos (vertical or horizontal)

New unloads or new drying equipment

Concrete and excavation expense eligibility

Storage capacity limited to two years total production.

Interested producers should contact the office soon to avoid a delay during construction season.