A past president of the National Corn Growers Association is predicting some farmers will change their planting intentions from corn to soybeans this year. Kevin Ross of Underwood said that’s because soybeans do not require an application of nitrogen fertilizer. “There’s more likelihood that’s the case just due to balance sheets,” Ross said.
Ross, who raises corn, soybeans and cattle near Underwood, said escalating nitrogen costs are putting farmers in a tough spot. “There are some things you can do to, obviously, to offset some issues, or cut back in any given year,” Ross said, “but at the end of the day you’ve got to feed the crop and it’s a large expense on everybody’s break evens.”
On March 31, the USDA will release its estimate of how many acres of corn and soybeans will be planted in the U.S. this year. Iowa State University ag economist Chad Hart said during a video briefing this past week that it’s likely less corn will be planted nationwide this year. “As we look now at what’s happening with the let’s call it the aftershocks of the Iran war and how that has heightened energy and fertilizer prices,” Hart said, “…that does tend to push some producers to move a little more acreage into soybeans.”
The average price for diesel in Iowa Friday was $4.62 a gallon, according to AAA, about 25% higher than a month ago. This week President Trump announced changes in shipping regulations that should let more fuel and the materials for fertilizer reach American ports. The American Farm Bureau’s president called it welcome news, as fertilizer stockpiles must be increased to ensure farmers who need nitrogen this growing season can buy it.
