According to the Nebraska Corn Board, Nebraska corn farmers are projected to invest more than $2.6 billion to plant 9.3 million acres, equal to last year’s total acres planted.
If the projected 9.3 million acres of corn is planted this year, Nebraska corn farmers’ will spend about $280 per acre to get the crop in the ground and off to a good start. When multiplied by the estimated 9.3 million corn acres to be planted in Nebraska, this equal a planting investment of more than $2.6 billion by the state’s corn farmers over a two-month period.
Boone McAfee, Director of Market Development and Research at the Nebraska Corn Board, said, “The full economic impact of the corn industry in Nebraska over the year is greater than $6 billion and reaches far beyond the initial $2.6 billion farmers invest to get their crop in the ground. When the corn crop is harvested, its economic impact grows significantly as it is converted into meat, milk, eggs, ethanol, distiller’s grains, bioplastics and more. That is why it is critical to get the corn planted and off to a good start in the spring.”
The projected $2.6 billion investment amount does not include the costs of land, labor or planting equipment and only takes into account inputs like seed, fuel, and fertilizer. However, the full economic impact corn has in Nebraska will more than double in a year.
This year farmers faced challenges from the weather and low commodity prices compared to the continued rise of input costs. Nebraska farmers historically begin planting in mid-April and finish in May. This year’s moderately dry winter brings a concern of soil moisture that will be available come planting time. The low commodity prices compared to the continued rise of input costs make the margin for the cost of production very slim for Nebraska farmers.
U.S. farmers are projected to plant 89.2 million acres in 2015, which is 2.5 million fewer acres than the previous year. If fulfilled, this would be the lowest planted acreage in the United States since 2010 and the third consecutive year of an acreage decline. According to the USDA, it would be still be the sixth-largest U.S. corn acreage planted since 1944.