AgMarket.Net® Releases Official Acreage Estimates

AgMarket.Net®, an agricultural brokerage and consulting firm, announces its acreage estimates ahead of USDA’s Prospective Plantings report.

AGMARKET.NET® ESTIMATES (MILLION ACRES)

AgMarket.Net® partners believe farmers will overwhelmingly increase planted corn acres this year due to a lack of profitability with soybeans.

“One of the main reasons for that decision is producers lamenting how they can’t make money with $10 soybeans,” says co-founder Matt Bennett. “That being said, the company feels confident we could come in above the acreage estimate two years ago of 94.6 [million acres] and soybeans likely come in substantially lower than last year’s 87 [million acres] as well.”

AgMarket.Net® does not believe the all-wheat acreage number will approach a number close to 50 million acres despite spring wheat acres holding strong. This is as profitability for wheat is also called into question.

AgMarket.Net® applied a hands-on approach to research its estimates. The company used direct farmer engagement, economic analysis, historical data and trends. Company analysts gained industry-wide perspective with its contacts within the commercial business, input space, transportation and meteorological sectors. The company also factored in spring crop insurance prices.

“Spring insurance price for corn is a nickel above one year ago while the soybean price is $1 below one year ago,” says Bennett. “Plus, their insurance guarantees on corn are better than what they’d be on soybeans relative to production costs. That’s another thing which could push growers to stick with their corn rotation, even in the face of potential dry weather.”

AgMarket.Net® is the Farm Division of John Stewart & Associates. Contact Betsy Jibben for further information.

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