September 4, 2007

US corn acreage may be down 9 percent next year as farmers switch to soy
 

Although high prices have driven US farmers to devote more hectares to corn this year, next year may see a drastic shift in the agricultural landscape, a survey by an agricultural magazine revealed. 

Producers responding to an August e-mail survey by Farm Futures reported they would cut corn acres by 9 percent next year, switching back to soy.

Soy prices, which have been rising all year long, are enticing farmers to switch to the grain, adapting to the traditional crop rotation practiced in regular years.

In crop rotation, farmers plant soy and corn in alternate years so as not to exhaust the soil.

If the survey extends to the larger population, corn supplies could slide to dangerous levels next year, as the nation's ethanol plants is heavily dependant on corn.

The survey put 2008 corn intentions at 84.9 million acres, down from 92.9 million this year.

Soy seedings would surge to 72.6 million, up from 64.1 in 2007, while wheat acres could fall slightly to 59.8 million, down from 60.5 million in 2007.

Farm Futures Senior Editor Bryce Knorr said farmers have learnt to respond to the market. Whatever they choose, be it soy, corn or wheat is likely to yield higher profits due to tighter supply.

Even though corn still commands high prices, the high input costs have turned off farmers. The expected drop in output could spark off a bidding war among industrial users of corn.

The magazine's estimates are based on an e-mail survey of more than 600 producers.