February 26, 2007

 

Doane survey shows increased US corn acres in 2007

 

 

A planting intentions survey conducted by Doane Advisory Services shows farmers intend to plant more acres to corn and fewer to soybeans in 2007.

 

According to survey results, farmers intend to plant 14.7 percent more corn in 2007 than was seeded the previous year, but soybean planted area will decline 12.5 percent in 2007, Doane said.

 

The survey was conducted by mail from Jan 19 to Feb 9, and included respondents from 45 states who intend to plant crops on more than 2 million acres in 2007, Doane said.

 

Doane Managing Director Ken Morrison told Dow Jones Newswires the planting intentions survey was the first of its kind for the advisory service. Based on the strong number of responses, "I'm sure this will be an annual event," he said.

 

The company decided to look at acreage, he said, because it seemed to fit in with the annual crop tours Doane conducts each year and because of the attention currently trained on grains due to the tight global stock situation and growing demand for biofuels.

 

If the survey results are extrapolated to national estimates, Doane said total US corn acreage would climb to 89.8 million acres, up from 78.3 million acres in 2006, while total soybean acres would fall to 66.1 million acres, down from 75.7 million.

 

"If the corn acreage increase is in line with the survey, total US corn acreage in 2007 would climb to the highest level since 1944," Doane said in a survey report. "The indicated decline in soybeans would drop planted acreage to the lowest level since 1996."

 

Total acreage among survey participants is expected to rise 1.9 percent from last year, according to Doane.

 

Regionally, the survey respondents in the South indicated the greatest potential increase in corn acreage, with sizable gains seen in the corn belt and West as well.

 

According to Doane, farmers intend to plant 28.5 percent more corn in the South, 13.8 percent more in the western corn belt, 13.5 percent more in the eastern corn belt, and 15 percent more in the Southern Plains and West.

 

As for soybeans, acreage will decline 13.3 percent in the western corn belt, 13.2 percent in the South, and 12 percent in the eastern corn belt, according to the survey.

 

"Lower soybean acreage in the South reflects the intended shift to more corn along with a 1 million acre increase in winter wheat in the region," Doane said. "Indicated cotton acreage is also down sharply in the South, with many of those producers planning a substantial increase in corn acreage."

 

Doane's survey suggests a "steep cut" in cotton acreage in the South and indicates cotton producers in Texas may shift some acreage to sorghum.

 

With regard to wheat, the survey also points to a decline in spring wheat and durum acreage as producers in the North Dakota, Minnesota and South Dakota switch to corn.

 

The US Department of Agriculture will release the first official government estimate of 2007 acreage in the March 30 prospective plantings report.