USDA PROJECTS BOOST IN CORN

3/3/25

During USDA’s 2025 Ag Outlook Forum, the Ag Department shared baseline acreage estimates for the season with the expectation of more corn and wheat acres and fewer soybeans.

USDA projected corn at 94 million acres, up more than 3 million from the final estimate for 2024.  With a trend line yield of 181 bushels per acre, the Ag Department pegged corn production at a record 15.5 billion bushels for the upcoming season.

The boost in corn plantings is attributed to favorable prices relative to competing crops.  The season-average corn price received by producers is estimated 15 cents lower at $4.20 per bushel.

Projected soybean plantings for 2025 are 84 million acres, down 3 million from 2024, with a trend line yield of 52.5 bushels per acre putting the production estimate at 4.37 billion bushels.

The decrease is a reflection of lower soybean prices driven by large supplies in South America.  The season-average farm price for beans is projected at $10 per bushel, down 10 cents from last marketing year.

The projection for wheat acres is up 2 million acres from 2024 at 47 million, reflecting increased winter wheat plantings.  The season-average farm price for wheat is pegged at $5.50 per bushel, down slightly from last year.

USDA Chief Economist Seth Meyer said tight margins are a concern for grain and oilseed farmers again this year.  He showed a graph that indicated a trend that repeated three times over the past 20 years.

During the event representatives from the Economic Research Service highlighted a projected bump in farm income for 2025, but Meyer said that considers all income sources from a mixture of all grain and livestock operations.