USDA released its initial crop acreage forecast last week at the USDA Outlook Forum. Overall acreage is largely in line with last year’s planted acres. However, there is a slight rotation out of corn into soybeans.
Note that the chart indicates 2014 forecast corn coverage is down to 92 million acres – a decline of 3 million acres vs. last year. Meanwhile, soybean acres have increased by an equal amount to 79.5 million acres.
Simultaneously, USDA is forecasting next year’s corn carryover to exceed 2 billion bu.; that’s the highest level in 10 years and the largest carryover in the ethanol era. That’s all contingent, though, on a forecasted yield of 165.3 bu./acre.
Clearly, there are lots of factors going forward that will change all of these assumptions. However, at this point, how do you see these forecasts with your observations out there in the country? How are you preparing for the potential of lower feed costs? Does the growing carryover make you more optimistic about the long-run feed outlook and willingness to grow the cowherd? Leave your thoughts below.