Acreage Battle: Possible Outcome and Impact on Basis
It’s that time of year when everyone is thinking about what they should plant for 2016. There is a great deal to consider, and many factors that farmers cannot control. The price of corn and soybeans has dropped, but a lower Canadian dollar has more than offset a weaker futures price. However, this bonus program may also be coming to an end. Input costs have fallen as well, but once again a lower Canadian dollar has offset these lower costs.
80% of the acres are most likely already spoken for, so it is time to hear from Ontario farmers -- share your planting intentions with us at: http://riskmanagement.farms.com/track-record/ontario-planting-intentions/survey.
The United States has a significant impact on what farmers in Ontario, and elsewhere in North America, will consider planting. Traditionally, Ontario farmers are very interested in the USDA Prospective Planting Report at the end of March as it can dictate the future direction of price. Statistics Canada also releases a similar report. In 2015, for the first time, Farms.com invited a number of farmers to participate in the Farms.com Risk Management Planting Intentions Survey.
“In the long term, crop rotation and yield considerations play a large part, as does total return and production costs when farmers are deciding what to plant,” says Farms.com Senior Commodity Analyst Maurizio Agostino. After compiling survey results in 2015, Farms.com Risk Management predicted that Ontario Farmers would plant less soybean acres, but grow more corn and wheat acres. “Our predictions were quite accurate,” continues Agostino “many producers were missing wheat in their rotation after 2 consecutive seasons of very wet planting conditions that prevented them from getting wheat in the ground.” The intentions were high, but in the end final Stats Canada numbers revealed that less acres were planted than originally predicted. Concludes Agostino, “The fact that the Ontario producer can still sell $5.00 corn into 2016 or 2017, points to more corn acres in Ontario in 2016.”
As an Ontario Farmer, Farms.com Risk Management invites you to have your say. Complete the 2016 Farms.com Risk Management Planting Intentions Survey: http://riskmanagement.farms.com/track-record/ontario-planting-intentions/survey. At the end of March, when the survey results are compiled they will be shared with everyone who participated in the survey – providing you with valuable insights into the Ontario marketplace and what impact, if any, it might have on basis.
Farms.com Risk Management Planting Intentions Survey participants will also be entered into a draw for one of three cash prizes:
- $300
- $200
- $100
To complete the Farms.com Risk Management Planting Intentions Survey: http://riskmanagement.farms.com/track-record/ontario-planting-intentions/survey.