After the increase in demand for soy this year, U.S. farmers have decided to plant more soy for this year. Farmers from North Dakota to Texas are planning to reserve their field for soybeans.
It was always corn that has the highest acreage for planting in the United State. However, since the increase of demand for soy in the market, the farmers have decided to change it soy. Bloomberg has reported that soybeans' price has increased to 9.2 percent. Since the 2016 harvest, soybeans have been the largest crop over corn after 29 years. Soybeans oilseeds are also cheaper to grow, according to the farmers.
"It's the difference between choosing to operate in the black or in the red. The market is telling us to plant soybeans," said Jon Mutschler, 48, who farms 2,500 acres or 1,012 hectares in Minnesota with his wife and son. Mutschler will plant more soybeans this year. He will increase it so 45 percent from 33 percent last year. He will also lessen his corn from 67 percent to 55 percent only.
U.S. farmers have produced massive amounts of corn and soybeans since seed technology improved. According to Reuters, farmers have planted double the amount of what traders have expected of them. Last year, soybean plantings came in at a record 83.688 million acres, the acreage report showed. It has upped from the government's March forecast of 82.236 million acres. Meanwhile, corn plantings were 94.148 million acres. It has exceeded the analysts estimated fall.
Soybeans are now used for many things that is why it has a higher demand. It is very useful in making animal feed, cooking oil and biofuel. The animal feed has upped the consumption and demand of soy bean since it is mostly used for that. Moreover, since eating of meat is also on its highest, food for the poultry animals are very much needed too. It is China that has the highest demand for soybeans; it has doubled in the last eight years.
