Plant-2023 is Already Set in Stone

Plant-2023 is already on the minds of farmers across the country. As proof, Farm Futures recently did a survey of farmers in all parts of the country who will get right to work this spring. Jacqueline Holland is the grain marketing analyst for Farm Futures.

Even if wheat plant-2023 does put a cap on corn and soybean plantings, Holland says American farmers are still going to plant a whole bunch of both crops.

“For corn, we’re looking at 90.5 million acres,” she said. “For soybeans, that’s 88.9 million acres. And for winter wheat, we calculated 34.9 million acres. For spring wheat, which includes hard red spring, white spring, and durum wheat, we’re anticipating 13.9 million acres. That gives us a grand total of 228.3 million acres for the three principal crops.”

plant-2023
Jacqueline Holland of Farm Futures

It’s been a few years since wheat took some acres from both corn and soybeans but rising input costs and still solid prices mean a lot of farmers may be giving wheat plant-2023 a second look. She was surprised when their winter wheat calculation came in lower than USDA’s prediction issued in January.

“But if you go back at Chicago winter wheat futures prices during peak planting season last October, they were 25 percent higher than the year before,” Holland said. “At the same time, input prices for corn and beans were still rising, so maybe it shouldn’t be that surprising that wheat is drawing interest for plant-2023.”

The one thing even more surprising to her was how narrow the gap was between corn and soybean acres. It’s probably going down to the wire to see how the acres shake out. But, going into spring, it looks like farmers have already made up their minds about what and how much they’re planting in the spring.

“A lot of growers had finalized their plant-2023 rotations before 2023 even began,” she said. “Seventy percent said they already had things locked in and weren’t expecting to make any last-minute changes.”

One thing she’s going to watch closely is the soybean harvest. Holland says 88.9 million acres of soybeans have the potential to lead to a “record-large” crop. If that happens, some of the supply pressure weighing on commodity markets may ease a bit.

“However, if we see more soy crush plants coming online and increasing capacity by the time we harvest the crop, there may not be much of a price break,” she said. “That added demand could keep soybean prices high even though we could be looking at a record crop.

“That’s a big one I’m going to be watching in the coming months,” Holland said.

Commodities, Sports, and Prognostication

Commodities and sports typically don’t go together most years. However, this fall, the two topics have come together in an interesting way.

Being a long-time sports broadcaster, I’ve noticed that when the major sports seasons wrap up, certain sports media love to immediately do what they call a “way-too-early” look to the next season. Evidently, it’s not just a sports thing.

I know harvest is just ramping up in many areas as I write this, but Farm Futures took what some might think is a “way-too-early” survey of planting intentions for 2023, and I couldn’t pass it up. It looks like corn will be king once again next spring among all commodities.

Commodities
Corn looks to be king when it comes to 2023 spring planting (photo from agriculture.com)

Jacqueline Holland is the grain market analyst for Farm Futures, and she wrote an article about the survey. She says the way-too-soon survey results are favoring corn for spring planting despite some challenges that come with the commodity.

“Even with higher fertilizer prices, farmers are still prepared to go all-in on corn,” she said. “Our survey found that farmers expect to plant 94.3 million acres of corn, a five percent increase from USDA’s current acreage estimates.”

If that prediction is realized, it would be the most corn planted in the U.S. since 95.4 million acres went into the ground in 2013. While soybean acres will be behind corn next year, U.S. growers are still sowing a lot of beans during spring planting in 2023.

“We expect farmers to plant 87.3 million acres of beans,” Holland said. “That’s almost a one percent decrease from this year’s acreage.” Cotton is one of the reasons that soybean acreage is going to drop a little. In the Mississippi Delta, a lot of acres in that region are going to provide “stiff competition” for soybeans during spring planting.

They also expect wheat acres to rise in 2023 thanks to more winter wheat acres in the Eastern Corn Belt. Farm Futures expects growers to plant 36.6 million acres of winter wheat. With more winter wheat acres going in the ground, spring wheat acres will back up from this year, with the 2023 estimate at 12.3 million acres.

“That means a grand total of 48.9 million acres of wheat will be planted in 2023,” she said.

Holland admits she was a little surprised at the survey results. She says there was a lot of price responsiveness to the rapidly-rising fertilizer prices heading into spring planting this year.

“When farmers were making their planting decisions in December last year, soybean prices were rallying strongly,” Holland recalled. “But with all of the issues we’ve seen with the flow of corn in the Black Sea this year, as well as the U.S. corn crop struggling with drought, corn has some bullish prospects for next year.”

She says if we do see a larger corn acreage next year, that might lead to some expansion back in the cattle market. In turn, that would likely revive some corn acreage in the Plains. Remember, about three million acres of corn went into prevent plant in the spring of this year.

Commodities
A Farm Futures Survey shows we might be harvesting a lot of corn again come fall of 2023. (Photo from kansasfarmfoodconnection)

“A lot of those acres were in the Dakotas and Minnesota,” she said. “Barring another bad weather event next year, I expect those acres to go back into corn in 2023.”

Farm Futures also has other questions in their survey beyond commodities and planting intentions. Those questions include where farmers are headed with input costs next year. Based on the survey responses, Holland says profit margins are going to shrink next year. The question is, how much?

“As of right now, it doesn’t look like growers are going to skimp on any fertilizer applications,” Holland said. “Most responses show farmers are ready to lock in their fertilizers at the lowest prices they can get. That will hopefully keep at least some liquidity in these crop budgets.

“We’ll see how these things ultimately shake out for planting and commodities,” she added. “There’s a long time between now and next spring.”

Frost in the Friday night forecast in farm country

Here is the audio podcast with Ryan Martin that you can download to your computer. You can also play it on your mobile device. Just his the play arrow on the left.

Frost in the forecast is rarely a good thing in farm country during any season outside of winter. In an ideal world, the only exception is a killing frost after corn states hit black layer. Of course, we don’t always live in an ideal world, do we? Ryan Martin of Warsaw, Indiana, is a long-time agricultural meteorologist who says the threat of some frost damage will begin this weekend.

“The days most in question are Friday night, May 8, into Saturday morning,” he said. “The axis of the coldest air will come across eastern Minnesota, Wisconsin, east-to-northeast Iowa, northern Illinois, most of Indiana, as well as all of Michigan and Ohio. This is the zone where we’ll see temperatures at 30 degrees or colder.”

He said the coldest air looks to hit Michigan and Ohio this weekend, where we could see some big impact on soft red winter wheat, especially in Ohio. The frost timing is not good as wheat has woken up out of winter dormancy and is moving forward through its growth stages.

“The wheat is at the jointing stage and anytime the crop gets further into its growth, that means the wheat is a little more susceptible to cold temperatures,” Martin said, “depending on how much the temps fall and how long they’re under a certain threshold.

“If wheat is just breaking dormancy and you get a cold snap, you have to be under 28 degrees anywhere between three and five hours,” he added. “When we get into the jointing stage and further along, wheat can barely handle 30 degrees for an hour or two. That’s where the issue lies on wheat this weekend.”

Frost
Ryan Martin, Hoosier Ag Today meteorologist, says the fast pace of planting in 2020 is
going to slow down for a few days due to cooler than normal temps in farm country. (Photo
YouTube.com)

Corn and soybeans will hopefully be a different story. Based on the crop planting progress and emergence reports, Martin, Chief Meteorologist for the Hoosier Ag Today Radio Network, is much more optimistic about those crops being able to survive the freezing temps.

“Illinois leads the way with nine percent of its corn crop emerged,” he said. “In most areas, the growing point of the crop is still going to be below ground, so I don’t think it will mean anything for corn and soybeans on mortality. What it does do is slow down that incredibly fast-paced planting season we’ve seen in many states.”

A couple of other examples include Iowa, which was on a record planting pace during the last planting update, while Minnesota just to the north is no slouch either on planting progress. The Purdue University meteorology graduate says all of the “good stuff” that comes with early-planted corn gets slowed down and “stunted” because of the frost/freeze over the weekend and the extended run of below-normal temps that won’t end till the middle of next week.

“Cold air moved out of Canada and focused on the Great Lakes, Upper Midwest, and the northeastern United States,” Martin said. “However, there’s an interesting twist ahead in the forecast for the next seven-to-ten days. We’ll start to see temperatures in the below-normal areas start to moderate on May 13 through 15.

“Things will take a drastic switch after that,” he added. “We’ll see above-normal temps in the Eastern Corn Belt, while the Plains may drop down below normal through the last part of May. There’s a lot of air currents, different movements here, different patterns trying to emerge, and it all has to do with where polar air is shifting to this time of year.”

It’s been a bit of an unusual spring so far for many reasons, but I’m just talking about the weather. What we’ve seen so far in terms of temps and precipitation has been very different from recent years. There’s no question, a lot of states have seen temperatures consistently lower than what they normally expect.

“Big swings in spring temps aren’t unusual,” says Martin. “We’ve certainly seen them before. I think the reason it’s coming home to roost a little bit more and has people scratching their heads is the degree of change from the last several years.

“We’ve had pretty dog-gone decent springs over the past handful of years,” he recalled. “We’ve come out of winter early and been able to hit the ground running based on the temps. Last year, precipitation was a big problem, but the temperatures were still decent. This year is the first out of the past five or so that’s really showed us the kind of variability we can see in the spring.”

Ryan will do custom forecasts for your radio and TV stations. Check out his work at www.weatherstud.com.

Farmer optimism hits an all-time low

Farmer optimism is in the dumper and there is no nice way to say it. COVID-19 and its economic impact, low commodity prices, trade wars, and weather have made life even more challenging. DTN found out that farmer optimism is at a record low. They’ve been doing a tri-annual survey of farmers for several years and this spring’s Agricultural Confidence Index hit an all-time low mark.

farmer optimism
DTN Editor-in-Chief Greg Horstmeier says farmers optimism hit an all-time low in their triannual Agriculture Confidence Index. (Photo from rushvillerepublican.com)

The baseline for their survey is 100. Everything below 100 is pessimistic, and any number above 100 is considered optimistic.

“We do our survey in the spring, just before planting,” said DTN Editor-In-Chief Greg Horstmeier. “We also do one at harvest, and then our final survey is in December, which is basically farm tax time. The drop in the index from the last time we did this in December is not a surprise, given everything that’s going on.

“It was a record-sized drop down to an index reading of 67,” he added. “That’s a 97-point drop, which is even more remarkable because we’re hearing that agriculture is moving on as normal. Everyone is either getting ready to or heading out into the field, so that big of a damper on the survey results is surprising.”

Horstmeier said spring is typically the most optimistic time of the year for farmers. New crops are going into the ground, which automatically means a fresh start, especially if the year before was as tough as 2019. Low optimism in the spring isn’t unusual. What’s unusual about this survey is how pessimistic farmers are about the future outlook.

The future outlook is typically very optimistic during the spring survey. “This year, that index reading was 73, which means it dove hard into negative territory,” Horstmeier said. “That was the big takeaway for me. Not only does the current situation have farmers in a pessimistic state of mind, but they don’t have a lot of promise for the foreseeable future.”

Another thing that really stood out was just how prevalent the pessimism is in different sectors of agriculture. It didn’t matter what farmers grew or how big their operations were, either. Even in down years, there’s typically difference worth noting.

“We typically see at least some differences between, for example, livestock and crop producers,” Horstmeier said. “We’ve also seen regional differences, such as the Midwest may be less optimistic than farmers in the Southeast. The pessimism was across the board, regardless of location, income level, the crops they grew, and what kind of enterprises they had.”

Speaking of Midwest farmers, in this year’s survey they showed the most pessimism currently, yet they also had the most optimism for the future. Southeastern farmers were more optimistic about their current conditions (89) but felt less optimism for their future (56).

DTN also conducts a similar survey of agribusinesses. The index level came in at a just-above-neutral 104. Agribusinesses rated their current conditions at a slightly pessimistic 85. However, they were above neutral when looking at the future, coming in at 118.

Here’s the link to the DTN survey article.

Spring weather forecast showing less flooding

Spring weather is never a dull topic of conversation in the Midwest, is it? We went from a fantastic week of mild weather leading up to Easter to a run of below-normal temps and snowfall on Easter Sunday. While it was only a couple inches here in Maple Grove, there were much higher amounts elsewhere. I talked weather with Bryce Anderson of DTN, who says it’s not unusual at all to get snow during April.

“That has certainly happened many times before,” he said. “The heavy snow was certainly unwelcome because it set back farmer fieldwork for a while, probably a week later than they wanted.

This is what spring weather looked like in a good deal of the Central Plains and Midwest when flooding hit farmers hard. The good news in the spring weather forecast this year is the threat of flooding has moderated, depending on where you live. (Photo from curbed.com)

Farmers are certainly chomping at the bit to get spring fieldwork done to get ready for planting. Remember April 15th of 2019 and the big snowstorm that moved through the Midwest? Here on the west side of the Twin Cities, we picked up 17 inches of snow last year. Happy Tax Day, right? However, despite that recent round of spring weather, Anderson doesn’t expect the monumental planting delays we saw last year during one of the roughest springs in recent memory.

Here’s a quick recap of a rough spring in 2019, courtesy of PBS:

“It won’t be a repeat of last year by any means,” he said emphatically. “Despite storm activity that moved through the southwestern and central United States, things were starting to moderate as we headed into the weekend. That colder arctic air we saw come into the Midwest over Easter was very slow in leaving the region, so that’ll also set fieldwork back a bit.”

One area of good news in the spring weather forecast is he’s not as worried about widespread flooding in farm country as he was a month ago. However, the caveat is that it depends on where you live. Still, things have slowed down some on that front.

“It’s not just me saying that either,” Anderson said. “Hydrologists with the Corps of Engineers have said the movement of the higher water throughout the nation’s river systems has been better than they hoped it would be. However, that doesn’t mean we won’t have trouble spots.

“The James River Valley that runs through South Dakota and the Red River Valley in North Dakota and Minnesota are still at flood stage,” he said. “In the Delta, there are streams in some portions of the lower Mississippi River Valley where flooding is still ongoing.”

Unfortunately for farmers and folks in those areas, flooding will likely continue in those areas for some time yet. Anderson did say that there likely aren’t going to be any new flood threats that develop in the spring weather forecast for farm country unless there’s a drastic change in the weather pattern. Before the recent run of cold and snow, farmers have gotten some planting done this spring in the eastern Corn Belt.

“There has been some soybean planting in Illinois and Indiana,” he said. “Growers in the western Corn Belt likely haven’t gotten very busy yet. In other areas of the Delta, corn planting is way behind in states like Mississippi and Arkansas. They likely won’t get a lot done after the recent run of storms and rainfall that recently hit southern areas.

Spring Planting Waiting for Drier Weather

By Chad Smith

Farm country is getting closer and closer to spring planting. Farmers are starting to look at their planters longingly, dreaming of being out in the field. After a wet winter that resulted in serious flooding problems, the nation’s midsection is looking for a spell of dry weather. However, ag meteorologist Ryan Martin of Warsaw, Indiana, says planters are likely going to sit a spell yet. It’s important to remember that we’re way too early to think about seriously-delayed spring planting.

“It probably going to be late this month or early into next month before planters get rolling,” Martin said. “It’s way too early to start thinking about serious spring planting delays. We’re actually not even at first planting dates in a large part of the Corn Belt yet.

Heartland Forecast

“As I look at the pattern stretching all the way from the Great Plains through the Corn Belt, we’ve got a big weather system that wants to move through late this weekend (Sunday, April 7 possibly through early Tuesday the 9th). There won’t be a lot of good drying time after that running through the end of the week.”

After that, there’s another system in the 11-to-16-day forecast that may have 1-3 inches of rain coming across all the key growing areas. Martin says, flooding and current situation aside, the forecast doesn’t give farmers enough of a window in there to really start spring planting en masse.

Spring Planting
The Elkhorn River in Nebraska is way over its banks, covering up a lot of farm ground in Nebraska. Spring planting is likely to be delayed in a large part of the Midwest and Corn Belt because of flooding just like this. (Photo from Omaha.com)

Parts of Nebraska, Iowa, and Missouri have been devastated by flooding this spring, and the dry weather farmers are looking for really isn’t going to happen. “I don’t think so,” he said. “The way the pattern looks over the next 10 days, I’m counting two systems that come through. One won’t have a huge amount of rain, but the second one could bring as much as a quarter-inch to as much as 1.25 inches.

“Normally at this time of year that would be good news,” Martin added. “But, the way things are set up right now it’s just not good.”

Southern Plains/Delta

There are some planters rolling deeper in the Southern Plains and in the Delta. Martin said the weather pattern in that part of the country shows that farmers may have to dodge some thunderstorms in order to keep spring planting going forward.

“Fronts will be coming through but as they do, they won’t hit everyone at the same time,” he said. “Over the next three weeks or so, those storms will end up with about 60-70 percent coverage at any given time. It doesn’t look too excessive to me right now. It’ll be a hodgepodge type of activity that should eventually allow crops into the ground and then get the crops the kind of rainfall they need to get going.”

The pattern for the heaviest rains wants to stay a little farther north into the Central Plains and the Missouri Valley Corn Belt areas. The interesting area to watch will be the far east part of the Deep South, where the likelihood of getting the crop in the ground on time is pretty good.

“Alabama, Mississippi, Georgia, and up into Tennessee are places where temperatures might lag a little behind normal,” Martin said. “There could be some thunderstorm development but I’m not quite as bullish on rain or bearish on getting spring planting in the Deep South done as I am farther north.”

Potential Flooding Possible in Upper Midwest

There won’t be as much happening in the western states in terms of precipitation like there will be in other parts of the country. The biggest story in the western U.S. won’t be in terms of new systems moving through. It’ll more likely involve snowpack runoff. The interesting thing about snowpack runoff is the problems won’t necessarily be just out west.

“The Red River likely will hit major flood stage in eastern North Dakota and western Minnesota,” he said. “There is snowpack that goes all the way back up into Montana and into the northern Rockies. The biggest question is just how fast we’ll see that snow melt and move through the area.

“The question is whether we’ll see a fast snowmelt with temps above normal,” he added. “That could be the story more than new systems coming through. Temperatures are still a little squirrely as temps likely will lag behind normal due to all that snowpack that still sits on the ground in those areas I mentioned.”

Here’s the entire conversation: