Farm Compliance

USDA’s World Agricultural Supply and Demand Estimates report projected a planting of 85 million acres, with 12.1 billion bushels to be harvested from 77.8 million acres produced at a yield of 155.4 bushels per acre. This yield is 1.5 bushels below the 1990-2008 trend and the average farm price for corn is projected at $4.10, ten cents below 2008.

“Planting progress throughout the Corn Belt is at the same level as last year although some important corn states have seen numerous delays because of a wet spring,” said NCGA President Bob Dickey. “Each year presents its own set of challenges. Even at this early stage, we expect to grow enough corn to meet all needs and provide a good carry-out. We faced similar challenges in 2008 and provided the second-largest harvest in history.”

In a crop progress report released Monday, USDA reported that surveys showed only 10 percent of the expected corn acreage was planted in Illinois and 11 percent in Indiana, far below the five-year average of 84 and 76 percent, respectively. Ohio and Michigan progress is significantly down as well. Overall planting progress shows 48 percent of the crop in the ground as of Sunday, the same as 2008, compared to a five-year average of 71 percent.

The supply and demand report also provides an early first projection at how the 2009 corn crop will be used, with increases in corn use for ethanol (from 3.75 to 4.1 billion bushels) and for export (1.75 to 1.9 billion bushels). U.S. corn ending stocks for 2009 are projected down from 1.6 to 1.1 billion bushels, and the season-average farm price is projected at $3.70 to $4.50 per bushel, compared with the record $4.20 reported for 2007 and the $4.10 to $4.30 projected for 2008.

Also reported by the USDA:

• Global corn production at 785.1 million tons would be the third highest on record. Corn production for 2009 is projected higher for Argentina and Brazil, but lower for China, EU-27, and Ukraine. Global corn feeding and food, seed, and industrial use are both expected higher in 2009 with growth in foreign feeding and U.S. ethanol production. World corn ending stocks are projected at 128.2 million tons, down 8 percent from 2008.
• Soybean production is projected at 3.2 billion bushels, up 236 million from 2008 reflecting a trend yield of 42.6 bushels per acre. Soybean supplies are projected at 3.3 billion bushels, up 5 percent from 2008 as smaller beginning stocks partly offset increased production.
• The 2009 outlook for U.S. wheat is for reduced supplies and use as lower production more than offsets higher beginning stocks and reduced export prospects outweigh expected gains in domestic use. Total production is projected at 2.026 billion bushels, down 19 percent from last year on reduced area and lower expected yields.