Wednesday, December 26, 2007

Soybeans Make Comeback

2007 saw a large increase in corn acres, many think this year soybeans will regain some of their lost acreage.

Corn took up about two-thirds of the 27-year-old grower’s 1,800 acres last year, with soybeans taking up much of the rest. Winklemann made out well with both. Corn fetched lofty prices, driven at least in part by ethanol production reliant on it, while soybeans are commanding prices not seen in decades.

Come spring, many farmers may be beckoned back to the beans, although Winklemann still isn’t sure what he’ll do. It’s a matter of economics: With prices of soybeans narrowing the gap with corn recently, there’s better profit potential in beans because they’re cheaper to grow than corn.

That’s not to say corn is a laggard; the grain recently has fetched $4 a bushel or more.

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