This morning, USDA lowered its 2010 corn acreage forecast by 0.9 million acres to 87.9 million acres. According to Henry Kirn, analyst for UBS, the revised forecast represents a 2% increase from last year’s 86.5 million acres. Additionally, USDA increased its forecast for soybean plantings by 0.8 million acres to a record high 78.9 million acres, also representing a 2% increase from last year’s acreage.
The ag agency also reported the use of biotechnology seeds, noting that 86% of corn acres planted in 2010 were planted with a biotechnology variety seed, compared to 85% in 2009, and up from roughly 25% in 2000.
Farm profitability likely to remain solid in 2010, says Kirn. “?Although down from the prior year, we note that corn, soybean and wheat prices remain well above historical averages, and farmers are expected to remain profitable in 2010.”
USDA forecasts cash net income to increase 8% year-over-year in 2010.