Largest US Planting in a decade required this spring to answer demand
“Analysts estimate farmers come spring must sow an additional 10 million acres—the largest U.S planting in a decade—to maintain adequate supplies of crops from corn to oats. The U.S. Department of Agriculture last week forecast supplies as a percentage of usage would fall to 15-year lows for corn and more than 40-year lows for soybeans. The agency also cut its forecast for some exporters such as Argentina and Australia… The supply outlook has pushed crop prices to multiyear highs, with corn trading at about $6.40 a bushel and soybeans trading at more than $14 a bushel…
“I can’t come up with a solution of where all these acres are going to come from, unless we start putting hay acres under plow,” said Dan Basse, president of Chicago research firm AgResource, meaning acres currently used to grow hay would have to be cultivated for crops like corn or soybeans.
“Yet grain prices are “screaming” for more acres, which will push farmers to convert pastures used for animal grazing to cropland and consider planting even in questionable weather conditions, Iowa State University agricultural economist Chad Hart said.
“Meat producers are likely to cut back on grain usage as high prices cut into margins. Export demand could weaken as well. Yet demand from producers of corn-based ethanol is expected to remain high as crude-oil prices above $90 a barrel drive more blending of the fuel additive than required under federal mandate.”
(Source: future.aae.wisc.edu)
