Farmers Expected to Plant Less Corn

Cybergal · Mar 31, 2008

Farmers Expected to Plant Less Corn
3/31/08

WASHINGTON (AP) Farmers are expected to plant less corn this year, which could mean continuing higher costs for consumers at the grocery store.
Corn prices have skyrocketed in recent years, helped by the burgeoning ethanol industry, which turns the crop into fuel, and rising worldwide demand for food. The higher prices have hurt poultry, beef and pork companies, who use corn to feed their animals.

Farmers are expected to plant 86 million acres of corn this year, the Department of Agriculture predicted Monday, down 8 percent from 2007, when the amount of corn planted was the highest since World War II. The decreased supply could drive corn prices even higher a cost for food producers that could be passed on to consumers.

According to the Agriculture Department, corn planting is expected to remain at historically high levels but could be down this year because of the high expense of growing corn and favorable prices for other crops, such as soybeans.
As many farmers have made that switch, soybean planting is expected to be up 18 percent this year, at almost 75 million acres. The largest increases in soybean planting are expected in Iowa and Nebraska.
Though the ethanol industry is heavily subsidized and has contributed to the rise in prices, a decrease in corn production could hurt that business, too. Higher prices for the crop could be passed on to those filling their cars up with the renewable fuel.

The number of ethanol plants has increased from 50 in 1999 to 134 now with more being built, according to the Renewable Fuels Association. An average, 100 million gallon-per-year ethanol plant consumes about 33 million bushels of corn.

The Department of Agriculture report is based on sample surveys of 86,000 farm operators in the first two weeks of March.
Terry Francl, a senior economist for the American Farm Bureau Federation, predicted Monday that corn prices will continue to rise possibly to $6 a bushel, around three times the price in 2005 but says consumers shouldn't panic just yet.

Many farmers will take a look at the report and decide to plant corn instead of other crops, he said, and weather conditions could also change things.
"We're going to have to wait until we go through the spring planting season," he said. http://ap.google.com/article/ALeqM5iDFuqqSH3VkkbxJml19Q8ajK3zaAD8VOJF0O0
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gearjammer-2000 · Mar 31, 2008

well duh, what did they think would happen to the price of food when they decided to make fuel out of our food stocks, save the world, plant a tree hugger

Brickman · Mar 31, 2008

I'm surprised that with the high price of fuel that a lot of farmers haven't cut way back on their production.

Baack · Mar 31, 2008

I wonder if the decline is partly due to crop rotation
Corn planted fields really need time recoup
Around here they rotate with soybeans

lookingup · Apr 1, 2008

lots hate hemp, why not let it burn in the engine....

WiseOne · Apr 1, 2008

Brickman said: ↑

I'm surprised that with the high price of fuel that a lot of farmers haven't cut way back on their production.
Click to expand...

I am too! Farm equipment uses diesel! HOW can this keep up?

Ronnocomot · Apr 1, 2008

WiseOne said: ↑

I am too! Farm equipment uses diesel! HOW can this keep up?
Click to expand...

Average corn output per acre is around 150 bushels.

May corn is $5.84 a bushel

$5.84 times 150 is $876

Average use of diesel is about 4 gallons per acre.

Even at $4 a gallon, that's only $16 an acre.

lookingup · Apr 1, 2008

http://www.washingtonpost.com/wp-dyn/content/article/2005/06/17/AR2005061701440.html

18wheeldumptrucker · Apr 1, 2008

What suprises me is that the 1 local station around here that carries E85, prices it at about 10 cents cheaper than regular unleaded. I thought it was supposed to be so much cheaper because it only requires 15% petroleum. So what gives? Does anyone know the answer to that?

Ronnocomot · Apr 1, 2008

18wheeldumptrucker said: ↑

What suprises me is that the 1 local station around here that carries E85, prices it at about 10 cents cheaper than regular unleaded. I thought it was supposed to be so much cheaper because it only requires 15% petroleum. So what gives? Does anyone know the answer to that?
Click to expand...

http://www.autobytel.com/content/sh.../article_page_order_int/9/article_id_int/1479

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