U.S. farmers are expected to achieve a record soybean crop in the 2024/25 season, driven by lower production costs compared to corn, adverse weather conditions, and a quick winter wheat harvest. The U.S. Department of Agriculture (USDA) has raised its soybean production forecast to a record 4.589 billion bushels, up from 4.469 billion previously estimated.
This increase in soybean output comes as global grain markets face an oversupply, following years of disruptions caused by the pandemic and the war in Ukraine. The oversupply, coupled with weak demand from exporters and domestic processors, has pushed prices down to near four-year lows, contributing to a decline in U.S. farm income forecasts.
Farmers are increasingly opting for soybeans over corn due to the high costs associated with corn cultivation, particularly the need for nitrogen and other fertilizers. Many farmers are reassessing their crops, focusing on which options will incur fewer losses. For example, Cordt Holub, a farmer in Iowa, noted that planting soybeans requires less management and fewer inputs than corn.
In regions affected by flooding, farmers were often unable to plant corn in time and turned to soybeans, which can be planted later in the season. The USDA has adjusted its estimates to reflect an increase in soybean acreage while reducing corn planting estimates.
Chris Gibbs, a farmer in Ohio, reduced his corn acreage by 20% in favor of soybeans, citing lower fertilizer costs and a higher likelihood of profitability. The ability to grow two crops in one year has also been a strategy for some farmers, maximizing their output during challenging times.