The market incentives all winter have been telling farmers to plant more soybeans, but we have seen a reversal in the new crop futures, says Chris Hurt, a Purdue University Extension agricultural economist.

“The March 31 Prospective Plantings report is going to suggest that producers are going to plant less corn and in fact that may be bullish to corn,” says Hurt. “During the last three weeks, market prices for corn have actually increased the incentive to raise corn as soybean prices dropped more sharply.”

Hurt predicts the report will be bullish on corn with surprisingly low acres and in response expects to see a rally. “On the other hand, we will see so many acres in soybeans that it is probably bearish to bean prices, which will provide additional incentives to get more acres of corn in the ground,” says Hurt. "I think Indiana producers will look for a few additional fields where corn can be planted rather than soybeans.

“The markets and the financial incentives provided by the grain prices, as well as the costs are very dynamic,” he adds. “Producers have some tough decisions to make this year, but they need to take a step back and make the best decisions they can.”

Hurt recommends producers go a little bit heavier to corn than they were thinking through the winter.

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Source: Purdue University Extension