Survey: Corn acreage may drop sharply as prices rise

By Lisa M. Keefe on 3/20/2008 for Meatingplace.com


The price of corn may rise more sharply than expected, if a survey of plans for crop plantings this year is any indication.

According to Carol Stream, Ill.-based Farm Futures magazine, the number of acres devoted to soybeans is expected to rise 12.4 percent this spring, compared with last year, to 71.8 million acres. Those of spring wheat are expected to be up 6.9 percent, to 14.3 million acres. Corn, meanwhile, is expected to see a drop of 6.3 percent, to 87.7 million acres, compared with last year.

Farm Futures a magazine that serves large agricultural business operations, conducted an e-mail survey of 974 growers in February and March.

Farmers' plans for crop plantings, though, are a moving target. Last year, the magazine's editors acknowledge, farmers ended up planting much more corn than they indicated they would in surveys. Also, an open question this year is how much new ground may be converted into cropland; the USDA's forecast in February showed a bigger increase than some believe will be possible.

USDA will release results of its planting intentions survey on March 31.