Increase In Soy Acres Driven By Demand And Planting Flexibility
SAINT LOUIS, Mo. U.S.
producers are projected to plant
76.7 million acres of soybeans in
2001, up three percent from last
year, according to a recently-is
sued U.S. Department of Agri
culture (USDA) report.
If realized, this would be the
largest planted area for soybeans
on record.
While some analysts have
speculated that this increase is
due to the level of the soybean
loan rate in relation to other
commodities, the American Soy
bean Association (ASA) believes
such analysis is flawed and over
looks enormous changes in de
mand, planting flexibility, and
other factors.
“Domestic and world demand
for soybeans during the last dec
ade has been far greater than for
any other commodity,” said ASA
President Tony Anderson, a pro
ducer from Mt. Sterling, Ohio.
“Global usage of soybeans grew
by 56 percent, compared to 27
percent for corn, 15 percent for
rice, 7.5 percent for cotton, and
only 6.2 percent for wheat. Even
in the United States, soybean
usage in the last decade outpaced
every other commodity. U.S.
usage of soybeans grew by 36
percent, compared to 27 percent
for rice, 26 percent for corn, 16
percent for cotton, and a decline
of almost five percent for wheat.”
ASA attributes soybean acre
age growth to the following fac
tors:
• Greater growth in world
and U.S. demand for soybeans
than for other commodities.
• Introduction in the 1996
Farm Bill of unrestricted plant
ing flexibility and decoupled in
come support payments that al
lowed producers to shift to
agronomically and economically
preferable crojf rotations. Prior
to 1996, soybean acres were con
strained by farm program provi
sions that required producers to
plant their farms to “program
crops” (wheat, feed grains, cot
ton, and rice) to receive income
support from the federal govern
ment.
• Relatively high soybean
prices between 1995 and 1997
that induced producers to plant
more soybeans. The season aver
age price received by farmers for
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the 1995 crop was $7.35 per
bushel, declining to $6.45 per
bushel in 1996 and $5.35 per
bushel in 1997. Since 1997, prices
for all major commodities have
been depressed, so there has been
no inducement for farmers to
shift acreage to other crops.
• Development of new soy
bean varieties in maturity groups
that are much better suited to
northern and western climates.
In recent years, new soybean va
rieties have made production
possible in colder and drier states
where few soybeans were grown
10 years ago. Last year, virtually
all of the expansion in soybean
plantings occurred in the north
ern and western states of North
and South Dakota, Minnesota,
Wisconsin, Michigan, Nebraska,
and Kansas.
• Prevalence of scab and other
diseases affecting wheat and
other crops. In major wheat
states such as North Dakota,
moving out of wheat production
has been the only way to avoid
reoccurrence of scab. Soybeans
and other oilseeds have been
among crops producers have
turned to as they have battled
disease problems.
• Unusually high costs of nat
ural gas and fertilizer that are
constricting corn production in
the Midwest. Additionally, the
Public Speaking Contest Results
NEWSMANSTOWN (Leb
anon Co.) A regional career
development event (CDE) was
conducted involving FFA
public speaking.
The event, at Millcreek Lu
theran Church in Newmans
town in early April, involved
Berks, Lebanon, and Schuyl
kill county FFA programs.
Following is a list of plac
ings from the CDE.
REGIONAL FFA
PUBLIC SPEAKING
CONTEST
RESULTS
Junior Prepared 1 Brandon Stoltz,
Conrad Weiser 2. Jessica Herbien,
Twin Valley 3 Chnstme Trout, Twin
Valley
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continuing disruption of foreign
and domestic com markets and
rising corn stocks resulting from
the StarLink® debacle may be
contributing to this year’s pro
jected decline in corn plantings
and increase in soybean plant
ings.
“A final factor useful in
judging whether the loan rate for
a commodity is out of alignment
relative to other crops is its
stocks-to-use ratio,” said Ander
son. “Carryover stocks of soy
beans this fall are expected to
total about 12 percent of current
domestic and export use. By
comparison, corn stocks are pro
jected at 20 percent of use, and
wheat supplies will be 34 percent
of use. Reducing the soybean
loan rate would likely increase
production of crops that are al
ready in greater surplus.”
In recent testimony before the
House Agriculture Committee,
ASA proposed setting the cur
rent national soybean loan rate
of $5.26 per bushel as a floor in
the next Farm Bill. ASA indicat
ed it opposes any reduction of
the soybean loan rate, because it
provides a vital income safety net
for producers. ASA strongly
maintained that expansion of
U.S. soybean acreage during the
last five years has less to do with
the loan rate compared to plant-
Creed Speaking. 1 Cathenne Haw
ley, Conrad Weiser. 2 Ashley Richards,
Conrad Weiser 3 Ashley Austin, Twin
Valley
Conservation Speaking’ 1 Beth
Kreider, Cedar Crest 2 Megan Gmder,
Conrad Weiser 3 Heather Hawkins,
Cedar Crest
Senior Prepared Speaking 1 Mar
geaux Firestme, Conrad Weiser. 2
Sarah Krall, Cedar Crest 3. Jaclyn
Mauser, Cedar Crest
Extemporaneous Speaking- 1 Javier
Moreno, Northern Lebanon. 2. Douglas
Sattazahn, Conrad Weiser. 3 Chet
Brubaker, Cedar Crest
Parliamentary Procedure: 1. North
ern Lebanon (Mandy Dechert, Kalene
Arnold, Amber Adam, Javier Moreno,
Jenny Maulfair, Michelle Campbell,
Andy Forney, and Zach Holbrook). 2
Cedar Crest (Jeremy Balsbaugh, Cart
Eisenhouer, Matt Balmer, Samantha
Shelper, Travis Krall, Kyle Seyfert, Tara
Miller, and Deb Schaefer).
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ing flexibility, growth in demand
and usage for soybeans, and vari
ous agronomic production fac
tors.
“Lowering the soybean loan
rate would severely hurt soybean
producers and significantly re
duce overall net farm income,”
said Anderson. “Suggestions to
lower the soybean loan rate are
ill-considered and ill-advised. A
better course would be for Con
gress and the Administration to
Keystone Junior Beef
Classic May 26-27
MERCER (Mercer Co.) The
Northwest Keystone Junior Beef
Classic will be conducted at the But
ler County Fairgrounds Memorial
Day weekend, May 26-27.
This will be the 16th year for all
breed steer and heifer show that has
drawn cattle and exhibitors from five
states.
The Northwest Classic gives youth
under 21 years of age an opportunity
to enter competition drawn from a
larger area than usually seen at the
county fairs in which they compete
during the summer. Exhibitors do
not have to be 4-H or FFA members
to participate. A friendly, helpful at
mosphere, along with a $l2 entry fee
make this the perfect preview show
for beginning showmen.
Preregistration by May 1 is encour
aged for inclusion in the show cata
log. Late entries will be accepted but
will have a $4O entry fee.
The three-day Memorial Day
weekend allows Monday for rest and
recuperation, since the open cattle
show is scheduled on Sunday. Satur
day’s activities begin with a new fea
ture “The Butler Blowout Maine-
Anjou Show” will begin at noon. The
always popular Classic Showman
ship Contest is slated for 2 p.m. A
Beef Cattle Judging Contest will be
held after that, followed by a pizza
party. A Trade Show featuring busi
nesses that help sponsor the show
will be open both days.
Sunday brings the real excitement
when the steer and breeding classes
are judged. In the
heifer show, premi
ums will be paid for
all classes, and tro
phies will be
awarded for grand
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Rheems Exit -Rt 283, Elizabethtown, PA 717-387-1319,717-653-8867
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adopt policies to expand trade
and domestic demand that will
get prices for all commodities
above current loan levels.
ASA has identified a list of ini
tiatives to bolster demand, rang
ing from food aid to commercial
trade to use of biodiesel and
other industrial uses for soy
beans. We look forward to work
ing with Congress and the Ad
ministration to implement this
agenda.”
champion, reserve champion and
bred and owned. Registered heifers
will show by breed and commercial
classes will be held for unregistered
heifers. A prize of $2OO will be
awarded to the supreme champion
heifer of the show. Reserve supreme
champion heifer will receive $lOO.
The very popular county steer
classes will again be offered for any
county (from any state) that has five
or more preregistered steers. County
winners will win a jackpot of $lO
times the number of steers shown in
the class.
Clubs and county groups can easi
ly coordinate plans for the group to
participate, and someone from each
county will win the jackpot. There is
also an all others division, for those
not having enough entries for a
county class. The county champions
will then compete with the all others
champion for grand champion steer
with a prize of $2OO, and reserve
champion steer with a prize of $lOO.
The next planning meeting for the
classic will be held April 24, 7:30
p.m., at the Mercer County Exten
sion Center.
Entry forms will be mailed to past
participants.. For more information
or entry forms, contact your county
extension agent, or Alvin Vogel (724)
538-8413, or write Northwest Key
stone Junior Beef Classic do Bob
Calvert, Mercer County Extension
Office, P.O. Box 530, Mercer, PA
16137.
MESSICICS
187 Merts Drive
Elizabethtown, PA 17022
Phone # 717-367-1319 1 -800-222-3373
Fax #717-367-6662
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