News

Dry bean marketer expects even less acres

A dry bean marketer says USDA’s prospective plantings report is bullish on its dry bean estimate.

Larry Sprague with the Kelley Bean Company tells Brownfield planting intention surveys were sent out when soybean prices were a bit higher last month which could mean farmers switch back to corn or other crops before planting is finished.

Sprague says he doesn’t believe there will be any major demand shifts for dry beans in the next two to three weeks when farmers get in the field.  “When you look at places like North Dakota and Nebraska and other dry bean areas in the west, there’s really no snow cover anywhere, ground is still wet but it would not take a couple more weeks of drying conditions before farmers will be in the fields.  Once farmers get in the field, the acres will be cut in stone.”

He says the country’s largest dry bean producer North Dakota had a significant switch from dry beans to soybeans, and it could be even greater once farmers begin planting.  “The cost structure and the extra yield that soybeans produce, even in a state like North Dakota, does offer more opportunities for farmers to switch out of dry beans.”

For Michigan, Sprague is more bearish on dry bean acres than the USDA because of large surpluses of small red beans and lower prices.  “The dry bean numbers that we’re seeing in Michigan are down, the report is seven percent.  Many of us however are thinking that the dry bean acres overall in the state of Michigan could be down a few percentage more than that.”

He says USDA increased Minnesota’s dry bean acreage, with light red kidney beans expected to be the bean of choice.  “We probably had the lowest production of light reds that we’ve seen in 30 years, back in 2016, just because the prices were so abysmal.  Those still haven’t recovered fully yet, but we are seeing more interest in growers in going back into some small reds in Minnesota.”  Minnesota farmers are expected to plant 20,000 more acres of dry beans this year to 175,000.

Sprague says Montana had the largest increase in dry beans, doubling acreage by 100,000, which he says is most likely tied to increased demand for garbanzo beans.

AUDIO: Interview with Larry Sprague