Source: Ukragroconsult (Ukraine)
U.S. farmers will increase corn acreage this spring while reducing soybeans, spring wheat, sorghum and other crops, CoBank’s Knowledge Exchange report predicts. According to data released Feb. 20, corn acreage will increase 4.2% to 94.6 million acres in 2025. This is due to rising global prices, strong export demand and record ethanol production. Profitable margins in the livestock and poultry sectors are also driving additional demand.
CoBank cereal market economist Tanner Ehmke says that while farmers typically stick to traditional crop rotations, the rising price of corn to other crops is contributing to a significant reallocation of acreage. He notes that the balance of acreage may still change depending on market factors, but corn is well positioned to become the top crop of 2025. Due to low feed prices, some acreage previously used for silage corn is expected to be converted to grain corn, increasing grain corn acreage by 5% to 87 million acres.
At the same time, the report notes that potential trade conflicts with Canada and Mexico could threaten demand for U.S. corn. Trade disputes with Canada could limit U.S. ethanol exports, while restrictions from Mexico would significantly reduce U.S. corn supplies.
Soybean acreage is projected to decline 3.6% to 84 million acres. However, this decline will be partially offset by an expansion in winter wheat acreage, opening up the opportunity to double-crop soybeans after the wheat harvest. U.S. winter wheat covers 34.12 million acres (+2.1%), according to USDA.
CoBank also forecasts spring wheat acreage to fall 5.9% to 10 million acres due to low prices and a strong dollar. Sorghum plantings will fall 9.5% to 5.7 million acres due to weak demand from China, which typically buys 90-95% of U.S. sorghum. However, low prices are encouraging use of the crop in animal feed and ethanol production, which could partially support the domestic market.