Oct 13, 2009
Farmers In Rio Grande do Sul Switching From Corn To Soybeans
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Farmers in Rio Grande do Sul are in the midst of planting their full-season corn crop, but heavy rains last week slowed down their planting progress. If conditions continue to stay saturated in the state, it could accelerate what is already a significant switch from full-season corn into additional soybean acreage. Farmers in the state are switching out of corn just like in the state of Parana due to low prices, large carryover stocks, reduced export possibilities due to a stronger currency, and high cost of production.
Conab estimates that the full-season corn acreage will decline 5-8% (70,000-110,000 hectares) and the state extension service estimates that it will decline 8%. Probably all these acres will be switched into additional soybean acreage and thus the soybean acreage will increase 2-4%. Most of the switching is expected to occur in areas that until recently were not considered prime areas for soybean production - the far southern and western parts of the state. Therefore, the soybean yields in these new areas will probably be somewhat less than the traditional soybean area of northern Rio Grande do Sul.