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Fewer corn acres can help with some profitability

The USDA is expecting fewer corn acres to be planted in the United States this year and an ag economist says if realized, that could help with profitability.

“Albeit small profitability, but we might see some profitability in the corn market in 2024.”

Ben Brown with the University of Missouri Extension tells Brownfield at least a 4-million-acre reduction is needed to make breakeven happen for many corn producers. But he also says…

“None of the crops needed acres. The concern was if we shrunk the corn crop, it would be an increase in the soybean acreage number and the fact we were able to keep soybean acres where they were expected, it helps profitability in both crops.”

Brown also says USDA’s forecast 6.5 million acre decline in principal crop acres, all crops including hay, tells him forage supplies will be tight again due to drought this year.

“Even though we’ve seen some moisture return to the region, the soil profile isn’t encouraging producers to put out alfalfa or seed summer forage grasses.”

Brown says USDA’s estimates aren’t confirmed until the end of June and he says price and weather will be the determining factors of what farmers actually plant in 2024.