Informa 2008 Acreage estimates

At 10:30 Informa released the following acreage estimates for 2008.

All Wheat= 64.1 mil, up 350 thousand from their October estimate, up 4.4 mil from 2007

Corn= 88.9 mil, up 3.1 mil from October, down 4.7 mil from 2007.

Soybeans= 68.1 mil, down 3.6 mil from October, up 4.4 mil from 2007.

**Note that the corn and soybean acreage estimates are NOT based on producer survey but strictly an assessment of economic incentives offered through price relationships.

With input costs up so dramatically, the "intangible" aspects of the acreage decision process will be very important and could result in a completely different acreage mix than described by today's Informa numbers. My personal sense of the farmers reaction to the 2007 growing season is that they are more willing to shift acreage back to soybeans than maybe what raw economic data may imply. This is due to a desire to seek more balanced risk exposure and to reduce the enormous need for financing due to sharply higher input costs for corn.

Duane
Published Tuesday, November 13, 2007 10:52 AM
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