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U.S. Farmers Shifting to Corn as Prices Stay Strong

U.S. Farmers Shifting to Corn as Prices Stay Strong


By Jamie Martin

U.S. farmers are set to plant more corn in 2025 as high prices make it the most attractive crop. According to a report from CoBank’s Knowledge Exchange, corn acreage is expected to increase by 4.2% to 94.5 million acres. Strong global demand, tight supplies, and record ethanol production are driving this shift.

Corn Gains While Other Crops Decline

As farmers move toward corn, soybean acreage is projected to drop by 3.6% to 84 million acres. However, an increase in winter wheat planting may allow some soybean acres to be retained for double cropping.

Spring wheat acreage is expected to decline by 5.9% due to weak prices. However, possible crop losses in Russia and the U.S. could support wheat prices, potentially limiting the decline.

Sorghum acreage is forecast to fall by 9.5% to 5.7 million acres, mainly due to reduced demand from China. Still, increased domestic use for livestock feed and ethanol production could help stabilize prices.

Cotton acreage is also expected to decrease by 7.8% to 10.3 million acres. A strong U.S. dollar, global economic challenges, and competition from Brazil are pressuring cotton prices. However, changes in China’s economy or a smaller-than-expected Brazilian crop could help support prices.

“While farmers tend to stick to historical crop rotations for agronomic reasons and market diversification, corn’s price rally relative to other crops suggests a major shift in acreage is in the offing,” said Tanner Ehmke, grains and oilseeds economist with CoBank.

The final planting decisions will depend on trade policies, weather conditions, and global demand. If trade disputes arise, especially with Canada and Mexico, they could affect U.S. corn exports and impact farmers' decisions before planting begins.

Photo Credit: gettyimages-studio2013


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