Grainnet

USGC: USDA Revised Acreage Estimates Gives Assurance Farmers Respond Well to Global Demand

This article is reprinted from the July 3 edition of U.S. Grains Council's Global Update.

USDA recently projected 87.3 million acres of corn planted, which is the second highest since 1946, behind last year’s total of 93.6 million acres.

This is a 1.3 million acre increase from the USDA’s March 31 projection.

Although this represents a seven percent reduction in corn acreage from 2007’s high, this is still the second largest corn acreage since 1946.

“This news gives us assurance that U.S. farmers are continuing to do their very best at responding to global demand,” said Ken Hobbie, U.S. Grains Council president and CEO.

With an estimated yield of 148.9 bushels per acre, total 2008 corn supply, production and carry-in, would be 13.2 billion bushels, meeting all currently estimated demands domestically and abroad providing a carry-out that is more than 5 percent of supply.

USDA’s first estimate of production and yield based on actual crop estimates will be released Aug. 12.

“Although this report gives us optimism, we know a lot could happen in the coming months and only at harvest time will we really know supply,” said Hobbie.

“I know our overseas end-users are concerned but we believe the market will have adequate feed ingredient supplies to meet global livestock interests.

"The marketplace will continue to respond to demand signals.”

Hobbie reiterated that despite tightening supplies a free and open market is an essential ingredient to the success of U.S. agriculture and international customers.

“Our policy clearly states that the U.S. Grains Council opposes unilateral economic sanctions that restrict or prohibit the sale of U.S. agricultural products to other countries,” he said.

“We believe the United States should work to enhance the food security of importing nations by pursuing a multilateral supply-assurance commitment within the WTO that would provide international buyers access to agricultural products equal to the access enjoyed by domestic customers.

"We have to continue to work to eliminate all existing trade barriers.

"We have to rally behind a free and open market.”

For more information, call 202-789-0789.