Input prices could cause crop acres to move from corn to soybeans
With input prices trending higher for corn, some traders in recent weeks have predicted more crop acres could move to soybeans this year.
The founder and president of Global Commodity Analytics says that soybeans may make more sense in certain parts of the country based on weather.
According to Mark Zuzolo, “The southern states that are in a drought that would plant corn or rice will probably move towards sorghum or soybeans. Hard red wheat producers that lose their crop this spring if we don’t get rains will probably try and dust in soybeans, and then, there’s the corn-on-corn producers in Illinois and in Indiana. Those producers have told me pretty dramatically this past year that they are looking hard at beans because their corn-on-corn yield numbers were just not what they need to be.”
Based on his experience, he says that the U.S. could legitimately see corn acres below 90 million, and soybeans above 92 million.
American Farm Bureau offers planting projections for 2022
How producers can navigate through high input costs
Even his historic commodity highs, input costs and inflation may hurt producer profits this year