But Thomas and many farmers like him plan to switch to corn and wheat, the staple crops of the former U.S. agricultural region, in 2019. American farmers have planted more soybeans than corn this year for the first time in 35 years. Turning back to old staple food crops will change this trend.
The reason why other crops are planned is that American farmers are facing difficulties in selling soybeans in the context of the trade war launched by President Trump against China. China usually buys about 60% of U.S. soybeans for export, but because of the trade war, nearly zero purchases of U.S. soybeans have been made in recent months, leading to a 10-year low in soybean prices.
Thomas plans to plant more wheat next year, hoping to earn more by reducing dependence on crops that depend on Chinese demand.
Without Chinese demand, he said, the spot price of soybeans near his farm was $7.10 per bushel, while the price necessary to cover costs was $8.50.
US farmers have set a record high soybean planting area this year, and the harvest is expected to reach a record high. At such a time of shock, they met with the blow of trade war.
In response to Trump's imposition of tariffs on imports of Chinese goods, China imposed tariffs on imports of American soybeans in July.
The U.S. Department of Agriculture will release its first estimate of planting area next year, which is expected to include consideration of tariff implications. The estimate is expected to confirm the expected reduction in soybean planting area by non-governmental organizations.
According to a report seen by Reuters, Informa Economics predicted on October 19 that corn planting area would increase by 4% to 92.7 million acres (37.5 million hectares) and soybean planting area would decrease by 7% to 83 million acres in 2019. Informa also expects us wheat planting area to increase by 4%.
The area planted before retaliatory tariffs rose to 89.6 million acres this year, about 15 million acres higher than 10 years ago.
Corn acreage has increased by less than 5 million acres since 2008 to 89.1 million acres. This year, wheat acreage is 47.8 million acres, close to the lowest level in 100 years.
Aron Carlson, president of the Illinois Corn Planting Association, has a total planting area of 3,600 acres. This year he will spend nearly half of his crop on soybeans, but plans to cut it in the future.

<>China's soybean demand does not count on US farmers to plan to turn to staple cr

 

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