Concern About Increasing 2009 Corn Acres

Farm Futures magazine reported in a recent survey that the soaring cost of growing corn is causing many farmers to rethink whether or not they will plant more corn in 2009, AgriMarketing said.

Farm Futures first survey for 2009 acreage indicates producers may not increase corn acres next spring, instead boosting ground planted to soybeans, which are cheaper to grow.  The Farm Futures survey puts 2009 corn acres at 87 million, unchanged from the latest USDA estimate of 2008 seedings.

Farmers cut corn acreage in 2008, after record plantings in 2007, due to strong soybean prices.  Soybeans again appear to be emerging as an attractive alternative in 2009, but this early trend indicator could be due more to costs.

The survey shows another big shift towards soybeans, with initial intentions at 78.5 million acres, up from 74.8 million in 2008.  Some of that ground could come from winter wheat, where seedings could be down this fall, especially in the eastern Midwest where soft red winter wheat is grown, the report said. 

Cash prices for soft red winter wheat have been persistently weak, despite historically high futures prices in Chicago.  The Farm Futures survey showed winter wheat seedings at 45 million acres, down from 46.6 million in 2008.