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Big shift to soybean acres may not be the answer

An ag economist says a big shift to soybean acres this year might not be the answer to farmers’ economic woes.

Purdue University’s David Widmar says just because the national trend might be to swap corn acres for soybeans – that might not be the best option for every farm.  “In the Iowa State budgets they were able to work down corn expenses aggressively,” he says.  “And they weren’t able to work down soybean expenses.  That sent a signal to favor corn.  Meanwhile at Purdue – there was an aggressive work down in soybean expenses.”

He tells Brownfield the South American soybean crop could also impact projected profitability for US growers.  “Last year we saw a strong rally in soybeans,” he says.  “As soybean planting and corn planting were underway – soybeans became much more favorable during planting season.  That definitely could be a situation this year.”

Widmar says tight margins will continue.  He says there are three things producers need to remember at all times:  what is my cost of production; what are the prices I can receive; and how can I take advantage of any bump in either the corn or soybean market.

AUDIO: David Widmar, Purdue University