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Market factors have shifted U.S. crop acreage toward corn and soybeans over the last decade

Market factors have shifted U.S. crop acreage toward corn and soybeans over the last decade
Over the last decade, the amount of U.S. acreage devoted to corn and soybeans has expanded while area of other field crops, such as wheat, hay, rice, and cotton, has tended to decline. The magnitude of these shifts varies regionally, with the Midwest and Plains States showing the biggest gains in corn acreage, while the Plains, Atlantic and Southern regions all show growth in soybean acreage that combine to offset a decline in soybean acreage in the Midwest. U.S. acreage patterns reflect changes in domestic and international demand. In the U.S., ethanol production has expanded demand for corn, while China’s rapidly growing livestock industry has boosted demand for U.S. soybeans. On the other hand, U.S. wheat faces growing foreign competition, particularly from the Black Sea region, while U.S. cotton and rice are highly dependent on foreign demand but also face stiff competition from foreign suppliers. Improved varieties of corn and soybeans have, at the same time, expanded opportunities to produce these crops in drier and more northern regions traditionally limited to wheat or other grains. This chart is found in the June 2013 Amber Waves article, “Crop Outlook Reflects Near-Term Prices and Longer Term Market Trends.”

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Last updated: Friday, May 31, 2013

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