Page 2 - KMA Ag Mag 2020

KMAland 2020
2 Overcoming Current Challenges in the Ag Community

An Increase of Planting in 2020

about 100 million bush-
By Chip Flory els from the 425 million
P planted bushels expected to be

Potential
left over at the end of
acres for 2020 have
been a market factor this marketing year.
This scenario would
since July last year when make it difficult for
100-million-corn-acre 2020-crop corn prices
predictions flowed from to average more than
grain analysts and seed $3.50, but bean prices
companies at field days could average as much
across the Midwest. The as $9.50 under this sce-
expected jump in corn nario. Move 2 million
acres from last year’s acres in this scenario
89.7 million has been Many of the acres that If corn acres in 2020 from corn to soybeans
scaled back since then, didn’t get planted last reach 93 million, odds in 2020 and corn carry-
but corn plantings will year will be planted in are carryover at the end over would still increase
very likely increase from 2020, likely pushing of the 2020-21 market- slightly from the current
2019. the combined corn and ing year will approach marketing year with
And so will soybean bean acre total back up 2.4 billion bushels, up bean carryover holding
plantings. Thanks to to 177 million to 178 about half-a-billion about steady. This re-
the wettest and slow- million acres. But that bushels from the current vised scenario suggests
est planting season on won’t be easy. In mid- marketing year. Bean a national average on-
record, the 76.1 mil- February, about 1.5 mil- plantings of 85 million farm cash price similar
lion acres planted to lion North Dakota corn acres – along with a re- to USDA’s projections
soybeans in 2019 were acres were unharvested covery in exports to lev- for the current market-
13 million to 14 million – those acres are Pre- els seen in the 2017-18 ing year - $3.85 for corn
below the previous two vented Plant candidates marketing year – would and $8.75 for soybeans.
years. for 2020. drop bean carryover