News

Drought expected to impact 2021 acreage

Ag economists on a market panel see the U.S. drought having an impact on markets in 2021.

Marty Foreman, with the University of Missouri, says the drought in the west is creeping its way to the east – in Iowa, Illinois and Indiana – and is likely to continue into the spring,

“Anytime you start out with a dry pattern or dry soils it just increases the risk to the crop as you get into the growing season so I think the market will clearly be concerned about that and I think you’ll see prices reflect that.”

Ben Brown with Ohio State University says acreage for 2021 will be impacted by those coming back from prevent plant. He says Ohio and the rest of the Eastern Corn Belt had a “terrible fall” last year.

“Last year, when the rest of the country was perfect planting conditions, getting ahead of pace for planting, the eastern corn belt – Ohio, Indiana, Michigan – we were behind. So, when I look at where we’re at now the fall of 2020 is really shaping up to get us caught back up to that.” Brown believes the current U.S. drought is likely going to increase the country’s “total pie” of acres for 2021.

Foreman and Brown were on the University of Missouri Agricultural Market and Policy Outlook webinar hosted by Brownfield’s Meghan Grebner.