Should Farmer Plant Organic Corn or Organic Soybeans in 2020/2021?

Should Farmer Plant Organic Corn or Organic Soybeans in 2020/2021?

The drop in organic corn prices in the mid-west in conjunction with the rise in organic soybean prices in the mid-west has weighed on the value of the The Jacobsen Organic Acreage Field Crop Index will likely drive farmers toward soybean planting for the 2020/2021 season.


The value per acre of organic corn has slipped to the lowest level in more than 4-years according to The Jacobsen. The Jacobsen Organic Acreage Field Crop Price index uses a national average yield per acre figure for both organic corn and organic soybeans to calcluate an average value differential for an acre of organic corn relative to an acre of organic soybeans. The figures are based on organic corn prices and organic soybean prices picked up at the farm, quoted by The Jacobsen. The value of organic soybean acreage value is subtracted from the organic corn acreage value to calcaulte the differentials.

The Differential has colapsed during the 2019/2020 season, which should drive farmers away from corn and into soybean planting. Expecations are for continued weakness in organic corn prices, which would further weigh on the The Jacobsen Organic Acreage Field Crop Price index. The index is well below the historical norm. The 2-standard deviation lower bounder from the 1-year average is 465.

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