HS: The analysts will be making their points and comments on the latest USDA acreage report. Here is the one from the Renewable Fuel Association.
The takeaway from this report is that U.S. farmers continue to apply the most efficient and effective technologies to produce record or near-record crops year in and year out.
It is quite likely that today’s USDA Acreage Report took everyone in the corn industry by surprise. According to USDA, American farmers planted 92.3 million acres of corn this spring, despite record flooding in some areas and extremely wet conditions in others.
IMPORTANT NOTE HERE:
While corn acres are at their second-highest level since 1944, total principal planted crop acreage is only 1% above 2010 and slightly lower than 2009.
Based upon USDA’s latest projections of average corn yield (158.7 bushels/acre) and harvested acres (84.9 million), it would mean a 2011 harvest of 13.47 billion bushels – nearly 300 million more bushels of corn than USDA was projecting in its most recent supply/demand estimates.
This would mean 2011/12 carryout stocks could be very close to 1 billion bushels (assuming no changes to USDA’s latest demand estimates). If average yields are closer to the historical trend (162 bu/acre), we would see a crop of 13.75 billion bushels.
As RFA VP of Research and Analysis Geoff Cooper notes, this is evidence that American farmers respond strongly to price signals and remain on track to continue the tradition of ever-increasing productivity.
However, Cooper also cautioned that it is still early in the growing season and weather conditions in July and August will be of paramount importance.
“American farmers answer the bell time and time again, and this year’sgrowing season is no exception. Despite flooding and other adverse weather during planting, farmers exceeded expectations and are on pace to once again meet the demands on corn for feed and fuel. Flooding in key corn growing areas may slightly alter the final harvested acreage number, but based on today’s report, it is realistic to expect a record corn crop in 2011.
The takeaway from this report is that U.S. farmers continue to apply the most efficient and effective technologies to produce record or near-record crops year in and year out. These technologiescan also provide farmers in developing countries the tools they needto be more productive and improve their ability to meet their nation’s need for food, feed and energy. Grain production is not a zero sum game.”
I do not know where you live but in Texas it is a whole ‘nother story than what the USDA and you are saying.
Cotton was at a most near all time high last year. In 2011 many folks that have a mixed crop farm planted more acres of cotton. Just about any ground under a sprinkler had cotton planted on it. Why is there no mention of that. Plus we were in a drought at planting time already, so the corn acreage was shortened. On top of that, from Corpus Christi to Oklahoma City is still in a drought. Corn does not produce to government yields unless it gets water.
So where is the truth of the matter?
I live in southern Manitoba and was reporting something a person / organization was saying about the corn crop. While not even a drop in the bucket when it comes to corn, in my travels yesterday, the corn in s. Manitoba isn’t very tall yet. In fact it is downright small and we are into July 6. A long, wet, warm July August and September is what we need.