Market analysts, including our own at Farm Futures, are watching signals for what farmers will plant in 2022. Will the crop mix change? The latest Farm Progress PANEL asked that question and what we found is that most respondents won't be making a change, but those that do could tip the acre balance this spring.
Only about 10% of respondents say they'll plant more corn in 2022. They may be betting on fertilizer prices moderating, or they've locked in their N, P and K purchase price in advance. We've heard stories of farmers taking delivery of fertilizer in 2021 to set their price for 2022. Perhaps they're the farmers boosting corn acres.
More than one-fifth of respondents say they're putting in more soybeans for 2022. The reason could be fertilizer prices, but we're also hearing soybean yields are up and the demand for soybean oil is a rising demand driver. That puts some confidence into a profitable price for this oilseed. If that 22% do boost soybean acres it will cut back corn plantings, sending an interesting market signal.
Most respondents, two-thirds, say they're not changing their planting plan. In part they've probably locked in their seed and chemicals – not easy to change at this point – and are ready for #plant22. Standing pat on your planting plan is a personal choice. With prices where they are, managing costs will be the key driver in 2022.
Keep up on those market moves at FarmFutures.com where morning and afternoon commentary provides insight for farmers.
Thanks to everyone who responded to these PANEL questions.
Let your voice be heard
The Farm Progress PANEL is your chance to share your thoughts on key issues. To take part, start by signing up for our daily mobile text service Farm Progress NOW. To do that text FARM to 20505, and be sure to respond to the text that follows we have a double opt-in system to make sure you're signed up.
Later in one of our daily update texts we'll provide information about how to sign up for the PANEL. And thanks to the respondents for helping us out.