Time to Talk Acreage? (VIDEO)

January 26, 2016 05:10 PM
Time to Talk Acreage? (VIDEO)

Winter wheat acres have plummeted. Oil prices are tanking. Bumper crops of corn and soybeans have left the market in bearish territory.

So will this lead farmers to plant fewer acres this spring? The answer might be different than you expect.

“It actually appears as if overall acres—well, corn and soybean acres—are going to be up,” said Joe Vaclavik of Standard Grain, speaking on U.S. Farm Report. “We know that winter wheat acres are going to be down pretty significantly. The way the corn and soybean acreage is going to go remains to be seen.”

Rich Nelson, chief market strategist for Allendale, agreed. “Between preventative plant last year, which was very large at 6.7 million acres … and (using) even an average planting season, you’re going to come out maybe 1.7 million acres back into grain production here,” he said, also speaking on U.S. Farm Report. “On top of that, you’ve got 800,000 acres out of (conservation), plus the winter wheat acres, so we’ve got just over 5 million acres extra between corn, beans, spring wheat and the small grains.”

Given all those factors, Nelson expects to see farmers plant an additional 2 million acres of corn and soybeans this year.

How will the rotation shake out? It’s too early to tell, according to Vaclavik.

“There’s a couple different schools of thought there,” he said. “The one school of thought is that soybeans (have) cheaper inputs (so) we‘re going to see expanded bean acreage. The other side of that is that (margins) in a lot of areas pencil out a  little bit better for corn right now given current prices … so despite cheap prices, you’re going to see a year-to-year increase in corn acreage.”

Nelson also expects to see an uptick in small grain acreage as well. “We certainly have heard a lot of these western Corn Belt producers and western Plains producers saying (they might plant) a little more sorghum, maybe a little more barley as well,” he said.

Watch the  U.S. Farm Report segment here:

What will you plant this spring? Let us know in the comments. 

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Spell Check

Houghton, SD
1/28/2016 06:25 PM

  When GM has unsold autos in inventory they don't crank up the assembly line. Think.

Limestone, ME
1/27/2016 08:52 PM

  For the life of me I cannot figure farmers out as a whole. your looking at break even prices for corn and soybeans and your going to plant more!! There is the proof there is nothing greedier than a farmer and nothing more stupid than one either!! good luck with that last man standing plan!!

yazoo city, MS
1/28/2016 10:18 AM

  @ Brent: obviously you have no idea how farmers have to work. Most do not have any other source of income so they must farm. In case you do not know, there is the thing called overhead. This cost is still out there. Maybe you have never had to meet payroll. Maybe you have never had to walk into the bank and say "I can't pay you back" after working all year. Learn some things before you start making unkind comments about things you know nothing about.


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