US farmers opt for soy to limit losses as all crop prices slump
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US farmers, including Mark Tuttle and Evan Hultine, are planting more soy and less corn on their farms in northern Illinois to limit losses as prices for both crops hover near three-year lows. Tuttle even broke the traditional soy-corn-soy rotation for field management by planting soybeans in one of his fields for a second straight year. The US Department of Agriculture (USDA) forecasted that farmers would plant 86.5 million acres of soybeans nationwide this spring, the fifth most ever. Some analysts expect soybean acres to increase by another million acres or more as heavy rains close the window on corn planting. However, planting more soy at a time of sputtering demand from importers and domestic processors will only serve to drive prices lower, further swell historically large global supplies, and erode US farm incomes. The expansion of soy plantings is expected to swell the US soy stockpile next season by more than 30% to the highest in five years and the sixth highest level on record as demand from the domestic and export markets is not keeping pace with rising production. Farmers are favoring planting soybeans rather than corn because they require less fertiliser and pesticides and seed costs tend to be lower. However, high interest rates have been a particularly painful expense for farmers. Cash prices offered for the next corn and soybean harvest have improved from earlier this spring, but neither crop pencils a profit at current prices. Rain-saturated fields in some areas could clip corn acres and even further expand seedings of soybeans, which can be planted well into June without significant risk to yields. Weather delays and a favorable price versus corn could boost soy plantings by 500,000 to one million acres above the USDA's latest forecast for 86.5 million.

#UsFarmers #Soy #Corn #CropPrices #Losses

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