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Analyst skeptical of big switch from corn to soybeans even with delays

A market analyst doubts widespread planting delays will push a lot of corn acres to soybeans.

Mark Schultz with Northstar Commodity in Minneapolis says most farmers would be better off taking prevented planting.

“The problem with the beans is you’re still at a low enough price that even if you put the beans in, you still can’t even make money.”

He tells Brownfield soybeans would have to yield at least 45 bushels per acre and increase in price another 50 cents just to generate the same revenue as prevented planting coverage.

Schultz says a possible wildcard is farmers being enticed to plant soybeans because of the Market Facilitation Program.

“It’s unfortunate that this administration decided to unveil a Market Facilitation payment, and then put in the stipulation that if you take prevented planting you’re not going to get paid.”

He says in attempting to not influence planting decisions, the USDA has created a mess by only revealing part of its plan for MFP2.

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