Shift in corn production strategy


American farmers are making a strategic shift towards planting more corn in 2025. This strategy is driven by the recent pressures and growing uncertainties regarding trade policies after President Trump implemented reciprocal tariffs. According to a recent article from Reuters, American farmers are planning on increasing corn production by 4%, and decreasing the soybean production by 3.6%.



According to an article from Progressive farmer, USDA forecast that farmers will make a record in corn crop in this year and the upcoming year.  Estimates made by USDA, there will be planted 94 million acres of corn, an increase of 3,4 million acres from last year.


The article further states that USDA estimates corn production up 718 million bushels, with a yield estimate of 181 bushels per acre. If these figures hold, both the production and yield would reach all-time highs. 


Seth Meyer, the Chief Economist at USDA, stated that the recent bounce in corn prices provides incentives to allocate more acreage to corn instead of soybeans. 




The American farmers are aware of the possibility that major importers, such as Mexico and China could reciprocate with tariffs on American agricultural products.The article also mentions that since soybeans are reliant on export to China, the farmers are deciding on corn production, which has a more stable demand.


This shift in corn production underscores the broader concerns raised in the previous blog regarding reciprocal tariffs and their impact on the wheat and corn market.


References


https://www.reuters.com/markets/commodities/american-farmers-plant-more-corn-seeking-best-chance-profits-2025-02-26/


https://www.northernag.net/market-commentary-from-the-northern-ag-network-2/



https://www.dtnpf.com/agriculture/web/ag/news/article/2025/02/27/usda-forecasts-record-corn-crop-crop

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