April 2, 2008

 

US farmers shift for soy from corn seen short-lived

 

 

As the USDA bets more planting for soy this year, some analysts think otherwise after soy futures prices fall by more than 20 percent since early March to just over US$12 a bushel, while corn held steady at US$6 a bushel.

 

Darrel Good, agricultural economics professor in the University of Illinois, said the pendulum has swung decidedly in favor of corn at this point.

 

Illinois farmer Larry Gleason said he plans to add more corn and take away some soy on his land.

 

Before the price drop, Gleason planned to follow the USDA advise to plant half of his land with corn and the other half with soy. Last year, Gleason planted 70 percent of corn in his acreage.

 

Good said similar shifts favoring corn once again could happen across the corn belt.

 

US farmers planted 93.6 million acres of corn in 2007, the largest since 1944.

 

On the other hand, farmers planted soy on 63.6 million acres, the smallest figure in 12 years.

 

The USDA predicted that farmers would shift back to soy this year due to high prices on robust demand.

 

An 8-percent drop in corn planting and an 18-percent increase in soy acreage were estimated by the USDA.

 

However, analysts said that the projections and the price drops in soy futures could prompt farmers to reconsider.

 

Bill Clift who raises corn, soy and other crops in Caldwell County in western Kentucky, said his original plans to plant about 2,000 acres with soy and about 1,000 acres with corn this spring may be changing.

 

Another farmer from Nebraska, Greg Whitmore, said he intends to plant 65 to 75 percent of his 2,500 acres in corn.