Corn Planted Area Likely to Expand – 03/05/2021

US farmers are likely to increase corn planted area this spring if weather allows. We estimate the March Prospective Plantings report will find 93 million acres planned for corn production in 2021 compared to the 91 million acres planted in 2020. Based on USDA February 2021 cost and revenue estimates, corn producers will make an estimated $400/acre  over variable costs in 2020/2021 compared to $250/acre in 2019/2020.

Corn will be in competition this spring with soybeans, sorghum, cotton and soft red wheat (SRW area increased 500 thousand acres based on the December survey). Soybeans is by far the most important competitor. All of these crops have been much more profitable in 2020/2021 than in recent years. Farmers may increase the combined area devoted to row crops this spring compared to the last few years.