US sees higher 2009 corn, soy acres

 

 

US farmers are seen to harvest 86 million acres of corn and 77 million acres of soy this year, both higher than in 2008, according to the projections by the US Agriculture Department released on Thursday (February 26).

 

During its annual outlook forum, USDA forecast corn consumption ethanol to rise 14 percent in 2009. About 3.6 billion bushels of corn were targeted for ethanol consumption last year, accounting for about one-third of the estimated 12.1 billion bushel corn crop produced.

 

A year ago, corn plantings totalled 85.982 million acres and soy plantings 75.718 million acres.

 

 

The department also forecasts farm exports during 2009 to drop to US$95.5 billion, down US$20 billion from the prior year, while imports are poised to rise to US$82.5 billion compared with US$79.3 billion in 2008.

 

USDA will conduct a survey of farmers to produce its planting intentions report, slated for release March 31.

 

The USDA has been more cautious in its projections for 2009 due to worsening global recession, after registering two strong years of record exports.

 

The US farm sector thrived in 2007 and 2008 on soaring prices for farm products on booming demand for grains and oilseeds, a growing biofuels industry and surging exports.

 

However, the industry has been shaken by the slumping global economy, falling commodity prices, slow demand and persistent high farming costs for goods such as fertiliser.

 

Commodity prices sharply fell since setting records in the first half of 2008 with corn and soy down about 50 percent and wheat 60 percent. Despite the drop, however, prices remain historically strong.