Commodity broker predicts a 4 percent jump in US corn acres for ’23
A commodity broker says there could be a sizeable shift in corn acres next year if commodity prices remain supportive.
Jeff Peterson with Heartland Farm Partners tells Brownfield he expects corn acres to top 94 million acres – a increase of 4.5 percent. “We believe that the farmers are more confident that they can go ahead a raise a bigger, more consistent yield on corn than on soybeans. We also think where prices are at, although input prices are high, I think the return for them is a little better on the corn side.”
He says the price spread between corn and soybeans could be the biggest variable. “If for some reason soybeans would take off and they’re priced relatively to corn would increase somewhere it’s closer to 3 to 1 as opposed to where it’s sitting here today, then that would start shifting some of those acres back.”
And, Peterson says, the cost of nitrogen will impact the final number. “If for some reason the price for nitrogen is extremely expensive, then we may have a few of those acres who were thinking of moving to corn would then move back to soybeans.”
He says drought in areas of the Great Plains may also force some farmers to chose other crops, but that’s unlikely.