March 5, 2008

China's corn planting to decline in 2008 as farmers gain less profit

China's corn planting is estimated to drop this year due to lower production profits gained by farmers, according to local reports.

Soaring input costs like fertilizers and fuel prices in China are seen to drive down potentially high profits.

In Jilin and Lianong provinces, cost of corn planting rose by 4.29 percent and 4.88 percent year-on-year respectively in 2007.

Furthermore, as corn prices began to drop, soy prices are escalating rapidly since the end of 2007, a member of the Heilongjiang Provincial Soybean Association said.

Consequently, farmers in the province are expected to shift to soy planting in Spring.