What Is The Future for Soybean Profitability?
Reducing outlays for corn production, tens of thousands of Cornbelt farmers this spring are planning to expand their soybean acreage in the face of burdensome world supplies, high US carryover, and the potential for less than profitable prices. At least that is what was indicated by USDA’s Planting Intentions report three weeks ago. According to USDA economists, only 2003 really provided economic opportunities for soybeans to return a profit, including covering land costs. Since 2000, the other four years have covered operating costs, including some depreciation and a return to labor and management. With increasing operating costs and higher land costs, those extra acres of soybeans may swim in red ink. USDA’s Economics Research Service (ERS) has released a comprehensive report on US soybean production, covering every aspect from production to international trade. But a graph on the last page of the 43 page document will catch your eye because it indicates such slim profit margins for
