Beans Making Comeback

Last fall the talk in farm circles focused on the demand for corn and how the market favored corn production. But in one short year, the tables have turned making soybeans the crop most in demand going into 2008.

Both crops, along with wheat, are likely to be profitable in 2008, says an agricultural economist with the University of Kentucky (UK) College of Agriculture. But the price ratio between corn and soybeans definitely favors soybeans.

"Farmers will have to respond to the market," says Kenny Burdine, UK ag economist. "It doesn’t mean they should totally abandon their crop rotation, but there will be a shift toward more beans."

The shift toward soybeans will be price-based, but it is also the logical crop rotation pattern on most Kentucky farms with full-season or double-crop soybeans/wheat typically planted following corn.

In 2007, Kentucky growers and growers across the nation responded to market demand for more corn with Kentucky producers planting 295,000 fewer soybeans acres and 320,000 more acres of corn.

Nationally, the result was a 21 percent increase in harvested acres allowing production to exceed the increase in use, giving the corn supply a slight cushion. At the same time, soybean acres and yields dropped, resulting in an 18 percent smaller crop in 2007 than 2006. Soybean use has been steady making for a very tight supply for the upcoming year and setting the stage for much higher prices in late 2007.

As a result, many soybean acres lost to corn in 2007 will likely return in 2008. In Kentucky, a number of those acres will be double-cropped soybeans following the winter wheat crop. Wheat prices are also strong, encouraging farmers to grow that crop as well. Those acres were planted in October and early November, but the actual number is not yet known. Nationally, soybean production is likely to increase by four to seven million acres in 2008.

"Unless something drastically changes between now and spring, we won’t see many continuous corn acres in 2008," Burdine says.

Demand for corn, wheat, and soybeans is expected to remain strong through 2008, and barring major weather problems, it should be a profitable year for grain producers, Burdine says.

Prices for 2008 corn and soybeans have been trading in the $4 and $10 range, respectively, on the Chicago Board of Trade. With prices at these levels, it is not too early to price a portion of the 2008 crop, Burdine says. There are several options growers have in forward pricing.

"But if anything was learned in 2007, it was that contracting too high a percentage, too early, can leave you worried about making delivery," Burdine says. "So, since the crop isn’t even in the ground, farmers need to be realistic about the amount of grain that is forward priced."

(Source: University of Kentucky)

Leave a Reply

Latest News
Prairieland FS employees
EmployeesA New Approach To Employee Retention
October 8, 2015
Long gone are the days when the term “career” implied to 30-plus years with a single employer. In the past, Read More
Crop InputsNew Bionematicide Meets Large Market Need
October 8, 2015
Marrone Bio Innovations, Inc. (MBI), a leading provider of bio-based pest management and plant health products for the agriculture, turf Read More
Industry NewsTessenderlo Kerley Completes New California Manufacturi…
October 8, 2015
Crop Vitality, a business unit of Tessenderlo Kerley, Inc. (TKI), the North American subsidiary of Brussels-based Tessenderlo Group, and the Read More
Photo credit: The United Soybean Board/The Soybean Checkoff.
HerbicidesNew DuPont Herbicide Gives Updated Burndown Options For…
October 8, 2015
Soybean growers seeking flexible, effective broadleaf weed control have another option to add to their toolboxes. DuPont Canopy Blend herbicide Read More
EquipmentDeere Announces New API Linking Operations Center With …
October 8, 2015
Deere & Co. and DN2K have agreed to form SageInsights — a joint venture to initially serve the agriculture industry Read More
Crop InputsDuPont, Caribou Biosciences Form Strategic Alliance
October 8, 2015
DuPont and Caribou Biosciences, a leading developer of CRISPR-Cas technologies for genome editing, jointly announced a strategic alliance. As part Read More
ManagementStoller Field Trip and Upcoming Events
October 8, 2015
Editors Paul Schrimpf and Eric Sfiligoj discuss a recent Stoller Field Day, the 2015 PACE Council Meeting and another event Read More
EmployeesSyngenta First Agriculture Company To Receive Fair Labo…
October 8, 2015
Syngenta has announced that it has become the first agriculture company to receive accreditation from the Fair Labor Association (FLA). Read More
Eric Jenks, Wilbur-Ellis
CropLife 100Wilbur-Ellis Opens Dry Fertilizer Storage And Blending …
October 8, 2015
Wilbur-Ellis Co., ranked No. 4 on the CropLife 100, has constructed and opened a 22,000-ton dry fertilizer storage and blending Read More
Fall Harvest
Crop Inputs360 Yield Center: Tips For Fall N Application Season
October 7, 2015
Harvest is underway and soon farmers will start setting the stage for the 2016 season. For many, that means applying Read More
Ag retailer at computer
Matt Hopkins5 Lessons Learned From Launching An Agricultural Data B…
October 7, 2015
Like many other industries, agriculture has witnessed big data rocket up the corporate agenda. And as an ag media company, Read More
Tom Vilsack
CropLife 100USDA: Ag Retailers Posted Record Income, Revenues In 20…
October 7, 2015
Agriculture Secretary Tom Vilsack today announced that the nation’s farmer, rancher and fishery cooperatives posted record income and revenue in Read More
FungicidesNew Corn Disease Confirmed In Illinois
October 7, 2015
Symptomatic corn leaf samples from Champaign County, IL, have been confirmed positive for the bacterium Burkholderia andropogonis (Pseudomonas adropogonis (Smith) Read More
Crop InputsBASF Expands Production Capacities Of Biological Soluti…
October 7, 2015
With the opening of its expanded Littlehampton, UK production site, BASF is strengthening its ability to sustainably meet the growing Read More
Dupont Pioneer
Crop InputsIs A DuPont-Pioneer Split On The Horizon Following CEO&…
October 7, 2015
The abrupt departure of the top executive at chemical and seed giant DuPont has reignited the debate over whether the Read More
DTS10 Sprayer Hagie
SprayersHagie Introduces 2016 DTS10 Self-Propelled Sprayer
October 6, 2015
Hagie Mfg. has introduced to the market the newest and most innovative member of its product family, the 2016 DTS10. Read More
Industry NewsSimplot, Agrium Execs Added To TFI Board
October 6, 2015
The Fertilizer Institute (TFI) announced the election of Garrett Lofto, president of the agribusiness group at J.R. Simplot Co., to Read More
Corn Field
Management‘Land Grabbing’ Grows As Agricultural Resou…
October 6, 2015
Since 2000, more than 36 million hectares — an area about the size of Japan — has been purchased or Read More