USDA Reports Accelerated Start to 2015 Growing Season

Farmers are ahead of schedule this spring, according to data released Monday by the USDA.

The Department says farmers have planted 87% of their spring wheat crop, which is a 36% increase compared to what was planted by May 10, on average, in the previous four years.

States most ahead of schedule are Minnesota, which is 98% planted, compared to a 49% four-year average; and North Dakota, which reports 82% in the ground compared to its 37% average.

• Corn in the U.S. is 75% planted, which reflects an 18% increase over its four-year average of 57%. Minnesota shows the greatest percentage increase, reporting 95% planted compared to a 50% four-year average. Wisconsin is also significantly ahead of its average with 75% planted compared to 57% in previous years.
   
• Soybeans are 11% ahead of the four-year average with 31% of plants in the ground. Minnesota again reports the most dramatic gain, with 70% planted by May 10 compared to the four-year average of 17%.
   
• Rice is ahead too with 83% planted this year compared to a 72% average. California is most significantly ahead of its average, reporting 75% in the ground compared to 36% from previous years.

Economists warn however that ahead-of-schedule is not synonymous with profit.

In a column in Forbes magazine online, Jerry Gulke wrote recently that “nowhere is the economic principle of supply and demand better depicted than in the free market arena of agricultural commodities.”

“A short supply necessitates a rise in price so as to discourage usage and encourage additional supply,” he wrote. “Conversely, excess supply necessitates a reduction of price to discourage production and encourage demand. It is the latter we find the current dilemma in ag.”

Gulke also said in the column that this strong start shows promise. It makes possible “ample supplies for the second straight year for feed and protein to support the rebuilding of the cattle industry,” and makes it likely that food prices will not inflate, which supports the country’s economic recovery.

Agrimoney reported on Monday that soybean futures dropped as the U.S. forecast its inventories rebuilding at a faster pace than had been expected this season. The article also said some limits to corn and wheat production prospects enabled a recovery in grain markets.

Read Gulke’s entire Forbes column at FarmEquip.org/Gulke. For the Agrimoney report: FarmEquip.org/forecast |  USDA Crop Progress Report  |  S