May 8, 2006

Corn plantings down, soy plantings up as farming costs soar in the US

The high cost of fuel and fertiliser is causing US farmers to switch from corn to less input-intensive crops such as soy, according to USDA's National Agricultural Statistics Service (NASS).

While US corn acreage is down 5 percent from 2005 to 78 million acres, soy acreage was up 7 percent to 76.9 million acres. 

Reduced corn acreage and greater consumption from ethanol plants may drive up the cost of livestock and poultry feed, the department said.

Corn acreage is down in most states with the state of Illinois expected to have the steepest drop of 700,000 acres, a six percent drop from last year's level.

Soy acreage is expected to increase in all areas except the Atlantic Coast and in the southern Great Plains. The largest increase would be in North Dakota, with a 41 percent jump. Soy acreage is expected to increase in the states of Illinois and Indiana, with a six percent and nine percent jump respectively.

NASS's acreage estimates are based on surveys conducted among 87,000 farm operators in the US.