Washington, DC
March 30, 2007
Driven by growing ethanol demand,
U.S. farmers intend to plant 15 percent more corn acres in 2007,
according to the
Prospective Plantings report released today by the U.S.
Department of Agriculture’s
National Agricultural Statistics Service (NASS). Producers
plan to plant 90.5 million acres of corn, the largest area since
1944 and 12.1 million acres more than in 2006.
Expected corn acreage is up in nearly all states, due to
favorable prices fueled by increased demand from ethanol
producers as well as strong export sales. Illinois farmers
intend to plant a record 12.9 million corn acres this spring, up
1.6 million acres – or 14.2 percent – from 2006. Record-high
acreage is also expected in Minnesota, North Dakota, California
and Idaho. Iowa continues to be the largest corn acreage state
with 13.9 million acres, up 1.3 million acres – or 10.3 percent
– from 2006.
The increase in intended corn acres is partially offset by a
decrease in soybean acres in the Corn Belt and Great Plains, as
well as fewer expected acres of cotton and rice in the Delta and
Southeast. U.S. farmers plan to plant 67.1 million acres of
soybeans, the lowest total since 1996 and a decrease of 8.4
million acres – or 11 percent – from 2006. Area planted to
cotton is expected to total 12.1 million acres, down 20 percent
from 2006.
Area intended for rice is estimated at 2.64 million acres, down
7 percent from 2006 and down 22 percent from 2005. If realized,
this would be the lowest planted acreage since 1987. Expected
acreage of long grain rice, which represents 76 percent of total
rice acres, is down 8 percent from last year. Producers of long
grain rice were affected by USDA’s March 5 ban on the planting
of Clearfield CL131 after unapproved genetic material was found
in the seed stock.
All wheat planted area is expected to increase 5 percent from
2006, to 60.3 million acres. Winter wheat acreage is up 10
percent and durum wheat is up 6 percent, while other spring
wheat is down 7 percent. Other crops with expected acreage
increases are sorghum, up 9 percent, and canola, up 12 percent,
and barley, up 7 percent from last year’s record low.
The Prospective Plantings report provides the first official
estimates of U.S. farmers’ planting intentions for 2007. NASS’s
acreage estimates are based on surveys conducted during the
first two weeks of March from a sample of more than 86,000 farm
operators across the United States. Following USDA’s March 5 ban
on the planting of Clearfield CL131 rice seed, NASS attempted
verify the planting intentions of producers who, prior to March
5, indicated their intent to plant long grain rice.
Prospective Plantings:
http://usda.mannlib.cornell.edu/usda/current/ProsPlan/ProsPlan-03-30-2007.pdf
EXCERPT
Corn Planted Acreage Up 15
Percent from 2006
Soybean Acreage Down 11 Percent
All Wheat Acreage Up 5 Percent
All Cotton Acreage Down 20 Percent
Corn growers intend to
plant 90.5 million acres of corn for all purposes in 2007,
up 15 percent from 2006 and 11 percent higher than 2005. If
realized this would be the highest acreage since 1944, when
95.5 million acres were planted for all purposes. Expected
acreage is up in nearly all States as high corn prices are
encouraging farmers to plant more acres to corn. The
increase in intended corn acres is partially offset by lower
expected acres of soybeans in the Corn Belt and Great Plains
and fewer expected acres of cotton and rice in the Delta and
Southeast. Illinois farmers intend to plant a record high
12.9 million acres of corn this spring, up 1.60 million
acres from last year.
North Dakota and Minnesota growers also expect to plant
record high corn acres, up 910,000 and 600,000 acres,
respectively.
Soybean producers intend to plant 67.1 million acres in
2007, down 11 percent from last year. If realized, this will
be the lowest planted area since 1996. Acreage decreases are
expected in all growing areas, except in New York and the
Southeast. Large decreases in soybean acreage are expected
across the Corn Belt, with the largest decline expected in
Illinois, down 1.40 million acres from 2006. However, area
planted to soybeans is expected to increase in the
Southeast, with Georgia expecting the largest increase from
last year at 95,000 acres. Planted acreage in New
York is expected to be the largest on record at 210,000
acres. All wheat
planted area is estimated at 60.3 million acres, up 5
percent from 2006. The 2007 winter wheat planted area, at
44.5 million acres, is 10 percent above last year and up 1
percent from the previous estimate. Of this total, about
31.9 million acres are Hard Red Winter, 8.66 million acres
are Soft Red Winter, and 3.92 million acres are White
Winter. Area planted to other spring wheat for 2007 is
expected to total 13.8 million acres, down 7 percent from
2006. Of this total, about 13.3 million acres are Hard Red
Spring wheat. The intended Durum planted area for 2007 is
1.99 million acres, up 6 percent from the previous year.
All cotton plantings
for 2007 are expected to total 12.1 million acres, 20
percent below last year. Upland acreage is expected to total
11.9 million, down 21 percent from last year and the lowest
since 1989. Growers intend to decrease planted area in all
States with the largest acreage declines in Arkansas,
Georgia, Louisiana, North Carolina, Mississippi, and Texas.
American-Pima cotton growers intend to decrease their
plantings by 10 percent from 2006, to 292,000 acres.
California producers expect to plant 250,000 acres, down 9
percent from last year’s record high.
Complete report:
http://usda.mannlib.cornell.edu/usda/current/ProsPlan/ProsPlan-03-30-2007.pdf
RELATED RELEASES
Source:
National Corn Growers Association
(NCGA)
U.S. corn growers responding to market,
NCGA says corn planting prediction up 15 percent over last year
 The
National Corn Growers Association
(NCGA) said the prospective plantings report released by the
U.S. Department of Agriculture today indicate corn farmers are
responding to market demands by intending to plant 90.5 million
acres in 2007. Last year, corn growers planted 78.6 million
acres.
“Strong demand for corn in all market sectors—exports, livestock
and ethanol—has put corn in the spotlight as producers get
planting under way,” said Ken McCauley, NCGA president. “We’re
confident corn farmers will produce another big crop given good
weather.”
These intentions would indicate 83.5 harvested acres. If average
trend yields of 152 bushels per acre are realized, corn
producers would be on track to produce 12.692 billion bushels in
2007, the largest crop on record.
If corn farmers carry through on these intentions, it will be
the largest corn acreage since 1944, when producers planted 95.5
million acres. The June 29 report will provide a clearer view of
2007 corn acreage.
Iowa farmers intend to plant 13.9 million corn acres, up from
12.6 million acres in 2006. If realized, Iowa farmers will plant
the most corn in the country. Illinois farmers intend to plant a
record 12.9 million acres this spring, up 1.6 million acres from
2006. Minnesota and North Dakota are the other Corn Belt states
with record planting intentions this spring.
Several southern states are playing a big role in the increased
acreage. Arkansas growers are expected to plant 560 thousand
acres in 2007, up from 190 thousand in 2006. Louisiana farmers
intend to plant 700 thousand acres, up from 300 thousand in
2006. Mississippi corn producers expect to plant 950 thousand
acres, up from 340 thousand acres last year.
Source:
Oregon State University
Highest acreage of
corn to be planted in six decades
U.S. corn growers intend to plant
a whopping 90.5 million acres of corn this growing season, an 11
million acre increase from 2006, and the highest acreage this
country has seen in over 60 years.
Ohio growers intend to plant 3.6 million acres of corn, up from
3.1 million acres last year. The bulk of the increased corn
acreage is coming from reduced soybean acreage across the
country and reduced cotton plantings in the South.
Matt Roberts, an Ohio State University Extension agricultural
economist with the Department of Agricultural, Environmental,
and Development Economics, said high corn prices are encouraging
growers to plant more corn. But with such a high planting
estimate, prices will likely slide if farmers see a normal
planting period.
"Analysts were projecting anywhere from 8 million to 12.5
million more acres, and this is clearly on the bearish side of
those estimates," said Roberts, who also holds a research
appointment with the Ohio Agricultural Research and Development
Center. "But with acres above 10 million, the market will see
this as meeting expectations and if we have normal planting
weather in April and May, prices will begin to weaken and then
slide."
The good news is that there will likely be enough corn to fuel
demands from the various markets that consume corn. That is, if
weather from planting through harvest is ideal.
"The focus of the market is to ensure availability of corn for
all users -- ethanol, livestock feed, foreign feed, food
markets, domestic industrial uses," said Roberts. "With these
acreage numbers, there is a less worry that there won't be
enough corn to go around. Of course, it's still contingent upon
planting weather and the weather we have this summer, and the
total number of bushels grown. But now there is much more of a
cushion for any sort of adverse weather."
Soybean producers intend to plant 67.1 million acres, down 11
percent from last year. If realized, this will be the lowest
planted acreage in over a decade. Ohio growers intend to plant
4.4 million acres of soybeans, down from 4.6 million acres in
2006.
Growers may be reducing acreage in soybeans and other crops to
accommodate corn, but they intend to increase their acreage of
wheat 5 percent from last year to 60.3 million acres. Winter
wheat is anticipated to increase 10 percent from last year to
44.5 million acres. However, Ohio growers will reduce their
acreage of winter wheat from 990 million acres last year to 870
million acres in 2007.
Associated Files:
pricesslide_hq_.mp3 (Audio, 605 Kb)
morecornavailable_hq_.mp3 (Audio, 1097 Kb)
plantingconditions_hq_.mp3 (Audio, 941 Kb)
Source:
Mississippi State University
Corn prices
send acreage soaring
Corn market prices are almost double what they were a year ago,
and Mississippi farmers are responding in kind.
Arkansas and Mississippi will lead the nation in percentage corn
production increases with 296 percent and 279 percent,
respectively. Of
48 states with a corn crop in 2006, only Massachusetts is
expected to decrease its acreage this year.
The U.S. Department of Agriculture released its annual
prospective plantings report March 30, and Mississippi producers
are predicted to plant 950,000 acres of corn, compared to
340,000 acres last year.
Mississippi’s corn acreage will exceed that of cotton for the
first time since 1958.
John Anderson, agricultural economist with Mississippi State
University’s Extension Service, attributes the shift to the
strong corn prices.
“The September contract for corn is a little less than $4 per
bushel. A month ago when planting was just getting under way,
those prices were up to $4.42,” Anderson said. “Ethanol is
leading the demand for corn, and a lot of the price influence is
speculation about how much ethanol we will use in the coming
years.”
Erick Larson, Extension small grains specialist, said ethanol is
consuming 1.5 billion bushels of a 10.5-billion-bushel crop,
just short of 15 percent of the national crop. Expectations are
for demand to increase in the coming years, especially if crude
oil prices remain at current high levels.
Larson said Mississippi growers had more than 75 percent of the
crop planted by the last week of March, which means they were
about three weeks ahead of schedule.
“That’s a good thing. Early planting generally produces higher
yield potential,” Larson said. “The lack of rain in early March
across much of the state helped growers get most fields planted,
but after about March 20, the dry conditions stopped field work
in some places because seeds needed more moisture to germinate.
We also have had extremely warm conditions, so fields are
rapidly running out of moisture at a time when they rarely
experience a drought.”
Larson said some growers already are irrigating corn just to
establish the plants. That will add to production expenses and
reduce profitability.
“Dry weather has caused some problems with nitrogen application.
Corn requires more than twice the nitrogen as cotton,” he said.
Dan Poston, associate professor at MSU’s Delta Research and
Extension Center in Stoneville, said if growers cannot finishing
planting their corn soon or if they have concerns about
nitrogen’s cost or availability, they may opt for soybeans.
Mississippi growers planted
1.67 million acres last year and are expected to plant 1.55
million acres in 2007.
“Farmers can plant soybeans without much capital, and prices are
good,”
Poston said. “With soybeans, farmers also don’t have the high
fertilizer costs or the worry about nitrogen issues.”
Soybean prices and acreage also are getting a boost by riding on
corn’s good fortune. Anderson said November soybean futures are
strong at around $8 per bushel.
Tom Barber, Extension cotton specialist, said if the weather
stays dry until the middle of April, some growers may switch
from corn and soybeans back to cotton. Mississippi farmers
planted 1.23 million acres of cotton in 2006, but they are
expected to plant only 740,000 acres this year.
Other crops for Mississippi listed in the USDA report included
180,000 acres of rice and 17,000 acres each of peanuts and sweet
potatoes.
Anderson decribed the report as the “most anticipated
prospective plantings report” in the last decade.
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