Farmers are planning to increase their plantings next year, even though prices are still low. That’s according to a survey done by Farm Futures magazine.
Specifically, corn and soybean plantings are both expected to go up. Nationwide, farmers expect to plant a total of nearly 90 million acres of corn, while soybean growth could reach a record 86 million acres. The increase in soybean plantings is attributed to the lower costs involved in growing it, making it easier for farmers to finance during a time when profits are low.
On the other hand, wheat appears to be heading for an overall decrease because of low prices and more profitable alternatives.
Farm Futures says the reason farmers don’t want to cut acreage is that there’s a chance that weather problems could suddenly cause prices to go up. The online survey was conducted between July 17 and August 3, asking farmers to report their planned acreage for 2016.