According to a report in the Cedar Valley Business Monthly, corn has been dethroned as the king of crops as farmers reported Thursday they intend to plant more soybeans than corn for the first time in 35 years, the U.S. Department of Agriculture said in its annual prospective planting report.
Profitability is the primary reason farmers indicate they intend to plant 89 million acres in soybeans and 88 million acres in corn.
Corn costs much more to plant because of required demands for pest and disease control and fertilizer. When the profitability of both crops is close, farmers bet on soybeans for a better return, said Chad Hart, an agriculture economist at Iowa State University.
“We’re hearing a lot more folks talk about when they’ve looked over the past couple of years beans have performed better than corn in terms of farm returns,” Hart said. “When they’re feeling a little pinched they do tend to look to control their cost side and that’s where beans have an advantage over corn.”
Soybeans cost about 60% to 70% as much as corn to plant, he said.
The report is an estimate based on farmer surveys and could change depending on weather and commodity prices at planting time.
The only year that soybean acres beat corn in recent memory was 1983 but it was due to government manipulation as the USDA pushed farmers to plant fewer acres in an effort to boost prices in the midst of the nation’s worst farm crisis.
Read the full report here.
