Soybeans are on the brink of becoming the number one cash crop for the first time in 35 years! King corn sowings are forecasted to drop 90.12 million acres according a Bloomberg survey and, in its place, soy plantings are set to increase by 90.69 million.
If you’re thinking you’ve heard this tale before, this same result was expected during the last planting season as well, however the temperature in North America favoured grain and the plantings of soybeans came up shy to that of corn.
The difference this year? Drought.
Dry weather is expected during this year’s growing season and soybeans are much more resistant to drought conditions than corn, making this the safest bet for growth in 2018.
The growth of soybeans isn’t just reflected in the fields. Prices are also favouring soybeans over corn with the futures trading at approximately 2.5 times higher than corn contracts, the fifth straight year that they are offering better returns.
Keep these factors in mind when considering what to purchase with your farm loans, especially if you’re a first-time farmer looking for a safe return on a low risk crop.
Being well informed on these types of important decisions is the key to success, talk to an Ag mortgage specialist today for an expert opinion.