Rising energy costs are causing a projected shift in crop acreage from corn to soybeans in the coming planting season, said an economist at the University of Missouri at the first Show-Me Ag Classic in Columbia.
Soybeans require fewer input costs, such as fuel, fertilizer and chemicals, than corn.
That shift, improves the price outlook for corn, and puts a cloud over soybean prices. Speaking to corn and soybean farmers, Young gave a preview of the expected changes in outlook that will be presented Congress, probably in mid-February. Working from a preliminary baseline prepared last November, Young highlighted factors that will change the final report. In addition to energy costs, there is an abundant world supply of grains. In the longer run, there is a global shift in demand from grain to animal protein in diets.