USDA sees less corn, more soy in 2009; principal crop area to drop 7.8 M acres

The U.S. Department of Agriculture on March 31 released its highly anticipated Prospective Plantings report. It stated that corn acreage will likely drop slightly from last year, while soybean acreage will climb to a record 76 million acres, just ahead of last year’s 75.5 million acres. The report also notes, however, that the total U.S. area planted to principal crops will decline by nearly 7.8 million acres, or 2.4 percent, from last year.

USDA said U.S. growers will plant 84.986 million acres of corn in 2009, trailing last year’s 85.982 million acres by 1 percent and dropping off a full 9 percent from 2007’s record 93.527 million acre crop. USDA said lower corn prices and “unstable input costs” have slowed corn planting somewhat, but added that this year’s projected acreage would still be the third-largest crop since 1949, behind 2007 and 2008.

Missouri farmers are expected to lead the nation with the highest percentage of increase in corn planted during 2009, the report said. Missouri corn acreage is expected to reach 3.05 million acres this year, up 9 percent from last year’s 2.8 million acres. The rest of the Cornbelt states fall within 1 percentage point, plus or minus, of last year’s crop.

Some analysts had expected a larger drop in corn acreage, and that could still happen if poor weather and flooding limits acreage in the Northern Plains and eastern Corn Belt. As has happened in other wet years, growers are more likely to switch from corn to soybeans if weather problems force a switch later in the season.

U.S. farmers intend to plant 76 million acres to soybeans in 2009, USDA said, making this year’s crop the largest on record if the intention is realized. Increases of 100,000 acres or more are expected in Arkansas, Iowa, Kansas, Mississippi, Nebraska, North Carolina, and North Dakota. The largest decreases in soybean acres are expected in Missouri and South Dakota, both down 150,000 acres from 2008.

Many analysts had anticipated a larger soybean crop, with expectations fueled by predictions of a smaller corn crop. John Heisdorffer, president of the Iowa Soybean Association, told local reporters last week that farmers are waiting until the last minute to make final planting decisions as they consider grain prices, input costs, and weather conditions.

Total wheat acreage in the U.S. is expected to decline 7 percent, to 58.638 million acres. Arkansas and Mississippi will see the biggest drop on a percentage basis from 2008, falling 53 percent and 54 percent, respectively. The Kansas crop, estimated at 9 million acres, would be down 6 percent from 2008, while Oklahoma and Texas, at 5.8 million and 6.1 million acres, respectively, would be up 4-5 percent from last year’s crop. North Dakota and Montana round out the other big wheat producing states in 2009, at 8.73 million acres and 5.29 million acres, respectively, down 5-8 percent from last year.

Cotton plantings are also expected to be down 7 percent, to 8.668 million acres – the smallest area since 1983. Acreage increases are anticipated in South Carolina, Tennessee, and Virginia, while Florida and Georgia will remain unchanged from 2008. Cotton acreage declines ranging from 3-20 percent are expected in the remaining cotton producing states with the exception of California, where 2009 acreage is expected to drop 17 percent to 75,000 acres.

The 2009 rice crop is projected at 3.183 million acres, up 6 percent from 2008’s 2.995 million acre crop. Acreage increases are expected in all Mid-South states, with only California looking at an acreage drop in 2009.

USDA’s projected drop in total principal crops acreage includes corn, sorghum, oats, barley, winter wheat, rye, durum wheat, other spring wheat, rice, soybeans, peanuts, sunflower, cotton, dry edible beans, potatoes, sugar beets, canola, and proso millet, as well as harvested area for all hay, tobacco, and sugar cane.

The report is based on a national survey of 86,000 farmers during the first two weeks of March. Data collection began Feb. 27, with final interviews completed on March 16.