USDA sees farmers planting more soybeans, fewer corn acres

U.S. farmers will plant 88 million acres of soybeans this spring, up from 83.4 million last year, while cutting corn plantings to 90 million acres from 94 million in 2016, the U.S. Department of Agriculture projected on Thursday.

Farmers are expected to make the shift because soybeans have become more profitable to grow. They are laser focused on financial returns after a decline in crop prices has pushed farm incomes to their lowest levels in years.

A Reuters poll of analysts estimated that soybean plantings would rise to 87.6 million acres and corn seedings would drop to 91 million acres.

The USDA estimated soybean prices would average US$9.60 a bushel, up about 1.1 percent from last year but down about 35 percent from a record in 2012.

Corn prices are projected to edge up three percent to $3.50 per bushel for the 2017-18 marketing year, according to the department. That is down 50 percent from a record high in 2012.

Several years of large harvests have pushed down prices.