According to a survey of grain producers by Farm Futures magazine, while farmers are looking to bump up their corn acres in 2016, the increase will be modest, with 89.5 million acres forecast. If that comes to pass, it would be up 1.7% from 2015, but 1.1 million acres below 2014 plantings.
Growers plan to cut back on soybeans, intending to plant 82.2 million acres, down around 500,000 from 2015. While flooding also set back soybean seedings in 2015, economics may keep growers from taking another crack at soybeans with that ground.
“Neither corn nor soybeans is showing a profit based on current 2016 crop prices, but corn has better potential to break even this year,” says Bryce Knorr, Farm Futures senior grain market analyst. “Farmers are beginning to recognize this, even though corn will require more cash flow in a tight year to plant due to higher production costs.”
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