2018 Acreage: Why A Large Uptick in Soybean Acreage Will be Difficult
Each March the acreage debate takes the agricultural center stage, and this year is no different. What makes the 2018 acreage debate notable is the very real possibility the U.S. may plant more soybeans than corn. Feeding the speculation is that it nearly happened in 2017 and an early 2018 USDA report forecast that soybeans would eventually overtake corn acres. Finally, the crop insurance discovery price for 2018 again favors soybeans.
Later this week the USDA will release the results of the 2018 planting intention survey. This report is significant as it will set the pace for commodity markets into the spring. With all this said, this week’s post outlines the key factors underlying the allocation of acres in 2018 and why a large soybean acreage increase will be difficult. (more…)