U.S. corn and soybean markets experienced their fifth consecutive year with national average yields at or above trend line levels. This is the first string of five good to excellent crops in well over 30 years. While an amazing accomplishment from a production perspective, this trend has had a negative impact on average price levels.

Wisconsin, like the U.S. in general, also experienced excellent crops the last several years. However, Wisconsin’s production as a percentage of national production has been less stable. For example, in 1999 Wisconsin produced a much larger percentage of the national corn crop than they did in 2000. This has resulted in more volatility in local prices relative to the mid-1990’s, and has increased basis volatility from year to year (basis is the difference between the local cash price and the futures price for the same commodity).