Remember, Corn is Not Just Grown in the Corn Belt
With today’s release of the USDA acreage report, it is becoming more apparent that the production of corn is rapidly expanding outside of the corn belt. North Dakota (3.9 million acres) for 2013 has almost planted as much acreage to corn as Ohio (3.95 million acres).
My father was born in South Dakota and was raised in North Dakota and I visited this state many times about 20 years ago. At that time, I do not remember seeing one acre of corn. We now have almost 4 million acres being planted to corn.
I believe that we will continue to see this expansion of corn into areas that never grew corn 20 years ago. Also, you may see the traditional corn belt start to contract if weather conditions continue to change.
The acreage report appears to be bearish, but remember, the crop still needs to be pollinated and we know how hot weather can affect that.
Paul Neiffer, CPA
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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