On March 31, USDA released the planting intentions report for the 2023 growing season. Overall, U.S. growers are expected to utilize more than 318 million acres to grow this year’s crops. Here are four takeaways for the major row crops based upon the report.
Corn
According to the report, U.S. growers intend to plant 92 million acres of corn this year, an increase of 4% from the 2022 figure. Planted acreage intentions for corn are up or unchanged in 40 of the 48 estimating states. The largest increase is expected in North Dakota, where producers intend to plant 800,000 more acres than in 2022. In addition, the report found that the planted acreage for corn in Arizona and Idaho will be the largest on record.
Based upon the findings, demand for corn globally is helping to drive this acreage uptick. Concerns remain among many nations that rely on corn imports that the ongoing Russia-Ukraine war will continue to keep grain shipments from this part of the world uncertain.
Soybeans
Soybean growers intend to plant 87.5 million acres in 2023, up slightly from last year. Acreage increases of 100,000 or more are expected in Minnesota, North Dakota, South Dakota, and Wisconsin. Record high acreage is expected in Illinois, Nebraska, New York, Ohio, and Wisconsin.
The expected growth in energy companies investing in and producing more renewable diesel (using soybean oil) continues to keep interest high among soybean growers.
Wheat
Wheat is in for a big year in 2023. According to the findings, U.S. growers will plant 49.9 million acres of all types of wheat this year, an increase of 9% vs. 2022 figures.
Wheat demand globally is driving this increase in acreage. Again, as with corn, ongoing concerns about wheat shipments coming from the Ukraine is motivating buyers to look for alternative sources to fulfill their wheat needs in 2023.
Cotton
With the other three major row crops all seeing increases in acreage, some category had to be down. This year, that crop will be cotton. U.S. growers will plant 11.3 million cotton acres this year, a steep decline of 18% compared with 2022 plantings.
Compared with last year, acreage decreases are expected in most cotton-estimating states. Texas, the largest cotton-producing state, is expecting the largest decline in cotton planted area, down 1.65 million acres from last year. In addition, upland cotton planted area in California will be a record low. Arizona is the only state expected to plant more cotton acres in 2023.
EDITOR’S TAKE:
Farmers are responding to global demand and market price indicators. The unrest from the Russia/Ukraine war is increasing export potential. Meanwhile, domestically, the use of corn for ethanol will likely increase even faster in 2023. And researchers are developing more and more uses for soybeans. All in all, it is no surprise that acreage for several major commodities is increasing. The impact of increased acreage and yields is expected to be minimal, thus, leaving farmers/ranchers with the prospects for another pretty darned good year of net income. It may not be a record, but they will have money to spend on trucks. It’s not too early to start finding ways to lure them into your dealership and let them know you would love to earn their business. Maybe some well-timed service and parts specials? Be sure to put your inventory on AgTruckTrader.com so they can find just the right truck or two.
