February 6, 2013

The US Congressional Budget Office (CBO) projected that farmers will plant 97 million acres of corn and 77 million acres of soy this spring, enough to produce a record corn crop and end three years of razor-thin supplies.

CBO projected a soy crop of 3.306 billion bushels, the third-largest on record. The projections assume normal weather and yields despite the lingering effects of the 2012 drought, the worst in 56 years.

Growers will collect a record US$16 billion in crop insurance indemnities for 2012 losses, CBO estimated in documents that forecast spending by the Agriculture Department and the rest of the federal government. Crop insurers would lose US$5 billion on their 2012 policies, the first money-losing year in a decade.