USDA: Minnesota farmers to increase corn, soybean and wheat acres

In its 2015 Prospective Plantings report, USDA forecasts Minnesota farmers will increase corn, soybean and wheat plantings. Corn farmers will plant 4 percent more acres than the previous year, and wheat acres will also increase 4 percent.

In the case of corn and wheat this counters the national trend, where overall corn acres are expected to drop 2 percent and wheat acres will be down 3 percent.

USDA predicts Minnesota farmers will plant 8.5 million acres to corn this year, up from 8.2 million acres in 2014. Agriculture experts say there’s more to this increase than meets the eye.

“Particularly in the central part of the state, farmers had difficulty planting all their corn acres last year, because of the very wet spring we had,” said Bruce Peterson, who farms in Northfield and serves as president of Minnesota Corn Growers Association. “The 4 percent rise really just reflects farmers getting back to their usual crop planting intentions.”

The forecast of 8.5 million corn acres in Minnesota is still fewer corn acres than were planted in Minnesota in 2013 (8.6 million acres). From that perspective, Minnesota is in line with the national trend, which points to an overall loss of about 1 percent of corn acres from the previous year.

The reduction in acres reflects farmers responding to lower crop prices. Recent reports on corn stocks — higher than expected — resulted in a bearish market.

“This market will be particularly challenging for young farmers, who don’t necessarily have the capital built up to weather low or negative margins,” said Peterson. “With this type of price environment, the key is to be ready when the inevitable rally comes along — and the surge in prices won’t last — to be ready to pull the trigger and sell your grain during those short periods. That’s the best you can do.”

Current indications are that corn production in South America and elsewhere in the world face no major weather challenges. However, a spate of wet weather in the southeastern U.S., if it extends much longer into the spring, may cause corn farmers there to choose to plant other crops, Peterson observed.

“The challenge they face in the southeast is, if they plant too late in the spring, then summer heat would hit right when the corn is pollinating and producing the grain,” said Peterson. “That could reduce the corn acreage somewhat and help strengthen the market.”

Minnesota wheat planting is projected to increase from 1.262 million acres planted in 2014, to 1.308 million acres that will be planted this year. Nationally, wheat acres are expected to drop 3 percent.

Minnesota farmers are forecast to increase soybean acres from the 7.35 million planted in 2014 up to 7.5 million acres, a 2 percent increase. Nationally, soybean acres are projected to increase by one percent.

Nationally, USDA forecasts: “Corn planted area for all purposes in 2015 is estimated at 89.2 million acres, down 2 percent from last year. If realized, this will be the third consecutive year of an acreage decline and would be the lowest planted acreage in the United States since 2010. Soybean planted area for 2015 is estimated at a record high 84.6 million acres, up 1 percent from last year. Compared with last year, planted acreage intentions are up or unchanged in 21 of the 31 major producing States. All wheat planted area for 2015 is estimated at 55.4 million acres, down 3 percent from 2014.”

See the full USDA 2015 Prospective Plantings report here.