This morning at USDA’s 99th Annual Agricultural Outlook Forum, USDA Chief Economist Seth Meyer announced the agency is projecting more planted acres of corn, soybeans, and wheat combined, but prices and farm income are expected to decline in 2023.
Planted Acres
According to USDA’s projections, American farmers will plant 91 million acres of corn this year, up 2.4 million acres year-over-year.
Feed and residual use is estimated to be up 6% and exports are projected up 275 million bushels.
USDA is expecting reduced exports out of Ukraine, modest growth in global trade, and strong Chinese demand.
Wheat acres are expected to increase 3.8 million while soybean acres are projected to be the same as 2022 at 87.5 million.
USDA says the increase in wheat acres is in response to high global prices and tight supplies, partially due to the ongoing war in Ukraine.
While acres are unchanged, USDA is expecting soybean production to be up from 2022. Due to more favorable weather being anticipated, yield is projected to be up from 49.5 bushels per acre to 52 bushels per acre.
Combined, planted acres are projected to increase nearly 3%.
Declining Prices
All three crops are expected to see a drop in prices.
Corn prices are estimated to drop over 16%.
The season-average price is projected to be $5.60 per bushel.
Soybeans may see at drop of nearly 10%, according to USDA.
The season-average price is estimated to be $12.90 per bushel.
Wheat prices are projected to drop almost 6%.
The season-average prices is expected to be $8.50 per bushel.
Farm Income
USDA projects 2023 net cash farm income to drop nearly 23% and net farm income to drop by 18%.
Meyer emphasized that while income is expected to be below the record set in 2022, it will still be strong.
