Farmers are still changing plans on crop plantings for 2008, according to Farm Futures magazine. The fall rally in 2008 corn, soybean and wheat prices is the reason. With futures at or near record levels, and input prices surging, farmer planting intentions are still evolving.
Farm Futures now estimates producers will plant 88 million acres of corn, 69.5 million acres of soybeans and 62.2 million acres of wheat in 2008. The magazine’s August survey had predicted corn at 84.9 million acres, soybeans at 72.6 million, and wheat at 59.8 million.
In 2007, farmers planted 93.6 million acres of corn, 63.7 million acres of soybeans and 60.4 million acres of wheat according to USDA statistics.
Farm Futures senior editor Bryce Knorr believes good yields was the reason many producers opted to keep planting corn. But soaring fertilizer prices and lack of supplies could force some farmers to put soybeans back into their rotations.
“The increase in wheat came mostly from winter wheat, thanks to a rally in September and October of more than $1 bushel in Chicago futures,” says Knorr. “But Minneapolis September wheat may have to rise further to attract acres, because producers on the northern Plains told us they plan to cut back sowings in the spring.”
Farm Futures plans to survey producers again prior to the March planting intentions report from USDA, and senior analyst Arlan Suderman expects more revisions then. “Farmers are responding to market forces, and those market forces will likely change another time or two before the planters are finished doing their job this spring,” says Suderman.
For more information about the Farm Futures forecast, go to http://www.farmfutures.com/ .
Source: Farm Futures Magazine