Corn production forecast lower amid wet spring, prevent plant looks to be large

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Farmers are making progress on planting, but the wet spring means lower production. Department of Agriculture Crop Progress numbers show roughly 15.8 million acres of corn and 33.6 million acres of soybeans remains to be planted based. The World Agriculture Supply and Demand Report, released Tuesday, predicts U.S. corn production to fall 1.45 billion bushels to 13.7 billion.

However, USDA left the soybean forecast unchanged, with “several weeks remaining in the planting season.” USDA raised the expected season-average corn price to $3.80 a bushel, and the season-average soybean price to $8.25 a bushel. Meanwhile, Agriculture Secretary Sonny Perdue confirmed this week that prevent plant acres could not be included in the Market Facilitation Program.

However, Perdue says USDA is “exploring legal flexibilities” to provide a minimal per acre payment to farmers who filed prevent plant and chose to plant an eligible cover crop. Perdue says USDA will provide more details “in the coming weeks.” The Market Facilitation Program is currently under review by the White House Office of Management and Budget.