For the first time since 2013, there is potential for corn to represent the highest planted acreage in the United States. This has left agriculturalists wondering what’s going on and why this is happening when corn prices are where they are.
Over the past couple of weeks, there has been significant discussion over the USDA’s Prospective Plantings Report, which estimated corn acres were increased by an approximated 3.7 million acres to 93.6 total million for the coming year. That is up 6% from last year! This has many farmers scratching their heads because corn is more expensive to plant and farmers could lose some money if things don’t go as planned. So, ultimately, what caused farmers to take this risk? Was it because of crop rotation? Is it just time for corn? Is something huge about to happen?
Patrick Holland, a team sales representative of Beck’s Hybrids from Western Illinois says, “Many of the opinions were that even with corn nearing $3.50, there was much more confidence in their [farmers] ability to raise a good corn crop and have certainty they could get closer to breaking even, and hopefully making a little profit this upcoming growing season.” Holland adds, “Corn yields have continued to trend upwards quite drastically, compared to where we have seen soybeans get to over the last 20 years. Across the industry, soybeans have been much more volatile, and the certainty is just not quite there like corn. Soybean yields have seen different bumps with some new technologies, but at $9 or $9.50 beans the margins are just that much tighter than corn.”
Kenton Carley, a corn and soybeans farmer in Eastern Illinois, says that he actually is planting more soybeans this year than normal. He adds that this is mainly because of crop rotation, but also sees less of a risk going into the planting season.“Planting corn is definitely more risky,” states Carley. “However, the reward could be greater with corn. It’s a changing game as it’s played out. The potential is there, but things can change very fast, so I am going to limit as much risk as possible.”
When it comes to spring planting, it is ultimately up to the farmer and what he feels is best for his region and making a profit. Most of the time, this decision is based on crop rotations, but sometimes farmers have to make the tough decisions. As Holland puts it, “Being able to focus on doing the right things, becoming more efficient where possible, and not giving up on yield is where most farmers believed they wanted to put their eggs.” The Prospective Plantings Report may not be what was expected, but we can rest assured that farmers everywhere will be working hard this season to ensure a safe and abundant food supply, no matter what the crop is.
To find the complete Prospective Plantings Report, click here.
University of Illinois