Is There Enough Land For Corn Production?

With corn prices rising along with other commodities, how land will be used will create conflict in what to plant for the next season.

“Cotton, corn, wheat and other agricultural commodities are all fighting for the same land,” said Tony Sagami, editor of Asia Stock Alert. “Farmers, like any other businessmen, will always allocate their resources to the most productive (profitable) options and normally make the right decision,” he said.

Corn is heavily used within the USA but other commodities (soybean, wheat, and cotton) are exported in larger percentages. This sets up the issue of US land being used for a crop it exports in large percentages. The USDA has raised, and then lowered, estimation on the nation’s corn crops in 2010.

Since then [January 2010], those expectations have been cut down. In October, the government agency said it expects corn production of 12.7 billion bushels, down 4% from the September forecast and down 3% from last year’s record production of 13.1 billion.