Insight from INFB chief economist Todd Davis

INDIANAPOLIS — Indiana and U.S. farmers intend to plant more corn and fewer soybean acres this year compared to 2024, according to Indiana Farm Bureau’s Chief Economist Todd Davis, who analyzed the recent Prospective Plantings report.

Indiana farmers are predicted to plant 4% more corn and 2% less soybeans during the 2025 planting season.

“Mother Nature will still have the final say of what farmers actually put in the ground this spring,” Davis said. “But this year I think farmers are weary of planting more soybean acres because of uncertainty of what will happen with our export relationship with China.”

The U.S. Department of Agriculture’s acreage report released in June will provide a clearer picture on how accurate these predictions actually are, he noted.

Davis shared top takeaways from his evaluation:

• The 2025 U.S. corn planted area is projected to increase by 4.7 million acres, up 5.2%, from 2024 and is 1.1 million acres above the market’s expectation.

• USDA projects the 2025 U.S. soybean area will decrease by 3.55 million acres, down 4.1%, to 83.5 million acres, which is near the market’s expectation.

• Indiana farmers intend to plant 5.4 million corn acres, up 3.8% from last year. However, USDA projects Indiana soybean acres to be reduced by 1.7% to 5.7 million acres for 2025.

• The report is somewhat bearish for the corn market as an increase in corn area could increase corn stocks from 2024. Conversely, the report is somewhat bullish for soybeans as a reduction in the soybean area could reduce ending stocks from 2024.

• The March 31 Grain Stocks survey suggests corn stocks are tighter now than in March 2024, which is positive for the corn market. However, soybean stocks have increased from the same period in 2024, which is negative news.

• Trade uncertainty with China will be a headwind for price potential until any uncertainty is resolved.

Read his complete report at https://tinyurl.com/Ag-Economy-Insights.