By Robert Pore
robert.pore@theindependent.com

In 2006, state farmers planted 5.05 million acres of soybeans, but saw those acres the next year plunge to 3.777 million. Farmers increased corn acres that same year by 1.3 million acres to meet the demand for the growing ethanol market.

But good soybean prices which have increased in Nebraska from $5.36 per bushel in March 2006 to $11.90 per bushel last month prompted the return to soybeans this year.

On the average, corn prices in Nebraska have increased from $1.96 per bushel in March 2006 to $4.75 per bushel in March 2007. But the state's farmers intend to plant 600,000 acres less corn this year than last.

Corn prices at the Aurora Co-op in Aurora were running at $5.38 per bushel and soybeans at $11.32 per bushel on Friday. On Monday, corn was $5.39 per bushel, but soybeans fell to $10.62 per bushel, a 70-cent decline following the report.

Along with price, other factors driving the increase in soybean acres are crop rotation prices and higher input costs to grow corn, especially fuel and fertilizer costs.

Last year, Nebraska's farmers planted 9.4 million acres of corn that yielded a record crop of more than 1.4 billion bushels. This year, farmers intend to plant 8.8 million acres, which is the second highest this decade behind last year's planted corn acreage still 7 million acres more than 2006's 8.1 million acres.

What helped increase corn production last year, along with the increased acreage, was above-normal precipitation during the growing season that gave a huge boost to dryland corn production.

"Corn and soybean markets have fluctuated considerably this spring, and this will likely continue," said Don Hutchens, executive director of the Nebraska Corn Board. He said that makes it more difficult to predict planting intentions.

"Each producer calculates the best marketing opportunity for their operation, and those calculations can change," Hutchens said. "As markets change following this report, what producers intend to plant may change along with them."

Weather is also a factor, he said, as a dry spring tends to be favorable for planting corn.

"Seed availability may also play into final planting decisions," Hutchens said. "Should there be shortages of favorite or chosen varieties, producers may change their minds."

While it was raining and snowing across the state Monday, March precipitation has been more than an inch below normal. February and January were also dry months.

April begins the start of the rainy season in Nebraska. In Grand Island, on average, 16.62 inches of rain will fall from April through August. Last year, the rainfall amount during that period was nearly 30 inches.

Nationally, corn growers intend to plant 86 million acres of corn for all purposes in 2008, down 8 percent from last year when corn planted area was the highest since 1944, according to the USDA.

Despite the decrease, the USDA reported that corn acreage is expected to remain at historically high levels as the corn price outlook remains strong, due in part to the continued expansion in ethanol production.

While corn acreage is down across Nebraska and the nation, production of ethanol from corn has been on the increase since Congress began mandating greater use of alternative fuels.

Nationwide, current ethanol plant capacity is 7.88 billion gallons, with another 5.54 billion gallons of capacity under construction, according to the National Corn Growers Association. If these projects are completed, ethanol production capacity would rise to nearly 13.5 billion gallons.

Nationwide, the USDA said soybean producers intend to plant 74.8 million acres in 2008, up 18 percent from last year, but 1 percent below the record high acreage in 2006.

Acreage increases are expected in all states, according to the USDA. The largest increases are expected in Iowa and Nebraska, up 1.25 million acres and 1.2 million acres from 2007, respectively. Increases of at least 800,000 acres are also expected in Indiana, Minnesota and South Dakota.

All wheat-planted acres nationwide is estimated at 63.8 million, up 6 percent from 2007. The 2008 winter wheat planted area, at 46.8 million acres, is 4 percent above last year and up slightly from the previous estimate.

Along with corn and soybean planting intentions, the USDA reported that in Nebraska:

* Last fall, winter wheat was sown on 1.95 million acres, down 5 percent from a year earlier but 8 percent higher than the 2006 crop.

* Sorghum growers expect to plant 350,000 acres, unchanged from last year.

* Dry edible bean producers intend to plant 125,000 acres, up 14 percent from 2007.

* Sugar beet plantings of 52,000 acres would be up 9 percent from a year ago.

* Sunflower planting intentions, at 45,000 acres, are down 8 percent from last year and the lowest since 1992.

* Hay acreage for harvest, at 2.5 million, would be down 6 percent from last year and the lowest since the series began in 1909.

* Oat planting intentions, at 100,000 acres, are down 17 percent from 2007 and the lowest in more than 100 years.