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A battle for acres could impact farm prices

An agricultural economist says one of the biggest concerns with the USDA’s March planting intentions report is that there will be too many acres planted to one crop.

Purdue University’s David Widmar says the early preview the USDA released showed a nearly 4 million acre reduction in winter wheat.  “The decline is mainly in the Great Plains,” he says.  “Those producers are facing some really tough times and they are looking to alternatives.  We saw this come in to play last year with a jump in corn acres as fewer wheat acres were planted last year as well.”

He tells Brownfield the market is already under pressure with growing crop inventories.  “If too many acres go to one crop, that could potentially further that scenario,” he says.  “Of course yield – through the summer growing season will be the decider.  But, when we start to see large acre shifts that starts to set us up where inventories could again grow.”

Widmar says cotton prices have been on the rise – and in cotton growing areas – it could compete for a portion of the 4 million acres that weren’t planted to winter wheat this year.

AUDIO: David Widmar, Purdue University