Farmers Really Want to Plant Corn Not Soybeans, Says FBN Chief Economist
Farmers Business Network (FBN) announced its 2023 corn and soybean acreage predictions on Wednesday morning, just 48 hours ahead of Friday’s USDA Prospective Plantings report and the Grain Stocks report for March 1.
Kevin McNew, chief economist at FBN, says the company's Planting Intentions Report shows U.S. farmers will plant 92.5 million acres of corn and 84.5 million acres of soybeans.
“That’s our big kind of takeaway, that corn acres will be higher than trade presumably thinks,” McNew says. “That’s our directional bias – bullish on beans, bearish on corn.”
A Look Back At The USDA February Report
At its annual Agricultural Outlook Forum in February, USDA released estimates of 91 million acres of corn for 2023, up 2.7% from last year. For soybeans, acres were projected by USDA at 87.5 million, which is flat with 2022.
The Pro Farmer-Doane annual spring planting survey results also indicate more corn acres and near steady soybean acreage for 2023. What's Driving Farmer's Acreage Decisions This Season?
McNew says FBN’s projections for this season are based on surveys of 2,000-plus U.S. growers who represent 4.7 million acres of row crops.
“I think what our farmers are clearly saying is they really want to go corn. They are not nearly as in love with beans as everyone thinks,” McNew told AgriTalk host Chip Flory.
USDA Report Is Highly Anticipated
The upcoming USDA report is keenly anticipated for several reasons, says Jon Scheve, president of Grain at Superior Feed. He notes the report:
• provides the estimated remaining stocks stored on farms and at commercial elevators.
• shows how tight stocks are and if price rationing is necessary.
• includes the first official planting intentions estimate for the upcoming year based upon surveys done by producers in early March.
As planting season nears, conversations are already underway about the impact wet conditions in the Northern Plains and Upper Midwest could have on final planted acres and the number of prevent plant acres.
There have been reports of farmers who increased their prevent plant coverage, which could be another sign farmers in the northern Corn Belt are worried about planting issues this year.
As the markets await the USDA report on Friday, the flood risk is well above normal along the Mississippi River, which fuels concerns about possible prevent plant acres this year. Read more about the concerns here: Weather and Flood Forecasts Point to Possibility of Prevent Plant in the Midwest, Northern Plains
Jerry Gulke: Can the Prospective Plantings Report Change the Market Tide?
Farming The Northern Plains: Wheat Is A Winner, Corn Is A Headache
Listen to the entire conversation on AgriTalk here:
