Speaking to 200 farmers at Kemptville College, Cal Whewell, an Ohio risk management consultant, said the grain market has been drifting for the last 10 months. "When the market drifts the price goes lower."

Meantime, a Canadian farmer gets $36 an acre in Canadian subsidies while U.S. farmers get $112.

Whewell told farmers "low prices this year have nothing to do with the U.S. Farm Bill." Record corn yields of 164 bushels an acre have left the U.S. with huge carryovers. "The chances of $4 corn next fall is going to be slim," he said.

In 2003, the U.S. corn yield was 10.1 billion bushels. That rose in 2004 to 11.8 billion bushels.

But demand also rose over the same period from 10.2 billion bushels to 10.8 billion bushels. The good news for producers is that the U.S. will require a record crop to meet demand. Average yields in the U.S. are about 145 bushels per acre.

One reason for increased demand is the burgeoning ethanol industry. But the breakneck speed of development is expected to level out.

The exchange rate on the Canadian dollar has also hurt grain prices, Whewell said. If the Canadian dollar were back at U.S. 65 cents, Canadian farmers would manage.