Soybean Planted Area likely to Expand – 02/24/2021

Farmers are likely to increase the number of acres devoted to soybeans this spring in response to the profitability of soybeans this season. Soybeans will have to compete with $5.00 plus corn, but there should be enough area available to increase cultivation of both crops. 

We have plotted the soybean corn price ratio and soybean planted area as expressed in the March survey. Our model projects soybean area based on the soybean price ratio and the number of soybean acres forecast in the June report the previous  year (to account for the trend factor).

 Our model projects the March 2021 survey at 87 million acres compared to the March 2020 survey at 83.5 million acres and the 83 million acres actually planted.  The model has a standard error of three million acres. Wet weather prevented both corn and soybean planting in 2020, but corn was affected to a much greater degree. 

The March Prospective plantings report is scheduled for release March 31, 2021.