The U.S. farmers plan to sow the largest area since 1984, with seeds of Corn, Soybeans and Wheat. The farmers of U.S. will seed the most area in a production this year, led by the biggest corn crop since World War II in 1984.
It seems like the U.S. farmers are taking advantage of the highest agricultural prices in at least four decades. Well, it’s nothing but a mild and dry winter that has raised expectations for a quick planting.
The seeds of Corn, Soybeans and Wheat will be sowed across 226.9 million acres, like mentioned earlier, the most since 1984. A survey of a manufacturing magazine showed that farmers were gearing up to plant 94.2 million acres, which could produce a record crop of 13.8 billion stacks based on a inclination yield of 161.4 bushels per acre. It would surpass the previous record of 13.1 billion in 2009.
The U.S. Department of Agriculture estimates that crop prices strengthened the economies of Midwest growing states, some of which reached the highest averages ever in 2011, and sent net farm income up 28 percent to $100.9 billion, pushing the value of farmland to a record $2,350 an acre. Global food costs, as per the daily news updates, are down 11 percent from a peak a year ago as grain output rises from China to Canada, United Nations data show.
The ‘bigger harvest’ forecast
U.S. has been the world’s largest exporter of Corn, Soybeans and Wheat. This year’s bigger harvest in the U.S. will help balance for shortages in the current crop year. Famine damage in Brazil and Argentina will most likely encourage the USDA to cut its global and U.S. grain-supply forecasts for the current season, as reported in a business magazine.
The Corn grown by the U.S. farmers, used to feed the livestock and make ethanol, is up by 2.6 percent from last year and the most since 1944. Soybean fields may grow 0.4 percent to 75.309 million acres, the fifth-most ever.
Trading commission of the USDA
The USDA affirmed its forecast for moderating food costs last month. Prices will increase 2.5 percent to 3.5 percent in 2012, below last year’s 3.7 percent gain. Return to normal weather in 2012 would mean more production from last year’s lost acres. The government also has reduced the amount of land it pays farmers to leave fallow by 4.7 percent, adding 1.47 million acres that weren’t available in 2011, USDA data show. Rising incomes allowed farmers to buy more land and the extra seed, crop chemicals and equipment needed.
The ‘bigger harvest’ would boost employment needs
Unemployment in Midwest states was 7.9 percent in December, tied with the Northeast as the healthiest job region. North Dakota, Nebraska and South Dakota were the only states with unemployment under 5 percent. The national rate fell to 8.3 percent in January from 8.5 percent in December.
Corn will lead the planting surge because it is the most profitable row crop. U.S. mandates for alternative fuels have led to an increased use of the grain to make ethanol, and rising worldwide incomes are boosting meat consumption, increasing requirements for livestock feed. Global production of beef, veal, pork, chicken and turkey will reach almost a quarter of a billion metric tons this year, 62 percent more than two decades ago, the USDA estimates.
Wagler, who plans to sow 85 percent of his family’s land said, “Farmers have the capital to plant a big corn crop this year. We can make more money raising corn than soybeans.”
Industries that would benefit from the ‘bigger harvest’
Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, who has been advising farmers and grain elevators since 1979 said, “Grain farming has been one of few profitable industries for the past three years, and there will be a tendency for farmers around the world to maximize acreage. We have the potential to grow record world crops this year that can swamp demand.”