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US Farmers Expected to Increase Corn Acreage as Prices Remain Resilient

By: CoBank via GlobeNewswire

February 20, 2025 at 13:57 PM EST

DENVER, Feb. 20, 2025 (GLOBE NEWSWIRE) -- U.S. farmers are projected to shift acreage to corn this spring as corn prices maintain an impressive run while prices for competing crops struggle to keep pace. Corn prices have been buoyed by tight global stocks, strong export demand and record ethanol production. Profitable feeding margins in the livestock and poultry sectors are also supporting corn demand.

According to a new report from CoBank’s Knowledge Exchange, corn is expected to pull acres from soybeans, spring wheat, cotton and grain sorghum when the spring planting season gets under way. The report projects total U.S. planted acreage for each of those crops based on statistical regression analysis and information from grain cooperatives and merchandisers across the U.S. The report also outlines scenarios and global market dynamics that could impact acreage allocation decisions before planting starts.

“While farmers tend to stick to historical crop rotations for agronomic reasons and market diversification, corn’s price rally relative to other crops suggests a major shift in acreage is in the offing,” said Tanner Ehmke, grains and oilseeds economist with CoBank. “We’re still several weeks away from the start of planting season, which means the acreage balance is still in flux. Multiple factors could shift how acres are traded around the U.S., but the current price environment suggests corn will be king in 2025.”

Corn
Corn acres are expected to climb 4.2% to 94.5 million in 2025. Notably, low hay prices are expected to shift acres out of corn harvested for silage to corn harvested for grain, raising the corn-for-grain harvested acreage by 5.0% to 87.06 million. However, the potential for trade disputes with Canada and Mexico could significantly weaken the demand for U.S. corn and curb the increase in planted acreage. A trade war with Canada may throttle exports of U.S. ethanol, while a disruption to the Mexican market could severely impact U.S. corn exports.

Soybeans
Soybeans are expected to experience the biggest drop with acreage falling 3.6% to 84.0 million. The loss will be somewhat blunted by last fall’s expansion of winter wheat acres, which will create more opportunity for farmers to double-crop soybeans following the winter wheat harvest. U.S. winter wheat acreage was tallied at 34.12 million acres, up 2.1%, according to USDA. The potential for tariffs on used cooking oil imports from China and canola oil from Canada would lift demand for soybean oil and encourage farmers to hold on to soybean acres.

Wheat
Spring wheat acres in the Northern Plains are expected to fall 5.9% to 10.0 million as wheat prices continue to struggle from a strong dollar and greater U.S. supply following last year’s bigger harvest. Most of the reduction in spring wheat acres will go to corn, but soybeans also stand to gain some wheat acres. However, the potential for weather-related wheat crop losses in Russia combined with losses to the U.S. winter wheat crop could quickly change the market dynamics and limit the loss of spring wheat acres.

Sorghum
Grain sorghum acres are expected to drop 9.5% to 5.7 million due to the lack of export demand. The loss of Chinese demand, which typically accounts for 90%-95% of U.S. grain sorghum exports, has pulled cash grain sorghum prices well below corn prices on the Plains. Low prices are prompting livestock feeders to include more grain sorghum into feed rations and ethanol plants are using more sorghum for ethanol production, bolstering U.S. demand. Higher domestic usage – and the potential for Chinese demand returning to take advantage of historically low sorghum prices – may lift prices and protect sorghum acreage from losses.

Cotton
Cotton acres are forecast to fall 7.8% to 10.3 million with prices struggling under the weight of a slowing global economy, a strong U.S. dollar and increasing competition from Brazil. The shift of cotton acres to corn will likely be greater in the Southeast than in the Texas plains. Texas cotton producers have shifted acres to wheat and other fall forages for beef cattle, which are currently trading at record high prices. An economic recovery in China or a shorter than expected crop in Brazil may underpin cotton prices and protect acres from shifting.

Read the report, Spring Acreage Outlook: Corn to Gain Acres from Multiple Crops.

About CoBank
CoBank is a cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 77,000 farmers, ranchers and other rural borrowers in 23 states around the country.

CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

Corporate Communications
CoBank
800-542-8072
news@cobank.com

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US Farmers Expected to Increase Corn Acreage as Prices Remain Resilient

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