When you look at the cotton markets, it’s not a surprise the price isn’t profitable at the moment.
“It just doesn’t pencil as well on paper like some of the other crops do,” says Ashley Arrington, founder of AgriAuthority. “There’s been no explosion in other commodity prices that’s pushing us in that direction.”
That’s why Arrington believes cotton acres will decrease in 2020. She’s not alone in her thinking.
At the same time, the National Cotton Council released its findings for its Annual Early Season Planting Intentions Survey. During its NCC’s 2020 Annual Meeting in New Orleans, Louisiana. According to NCC, U.S. cotton producers intend to plant 13 million cotton acres this spring, down 5.5 percent from 2019 (based on USDA’s February 2020 estimate).
NCC says upland cotton intentions are 12.8 million acres, down 5.6 percent from 2019. At the same time, extra-long staple (ELS) intentions of 224,000 acres represent a 2.7 percent decline.
When it comes to peanut profits, Arrington says growers are looking at $400 per ton last year and it looks as if price could be similar for 2020.
“We are always basis positive in my part of the country for corn,” says Arrington. “We are all irrigated [in the South]. Therefore, [the crop] usually turns out well.”
Arrington believes the biggest gain will be in corn and peanuts because of rotation.
“Rotation will determine [corn or peanuts] on a per farm basis,” says Arrington.
Arrington says soybeans are not as wide spread as corn acres in her region in the Southeast.
“Farmers [generally] enjoy planting corn a bit more,” says Arrington. “[You can hit a homerun on] Dryland corn,” says Arrington. “It’s very rare if you hit a homerun on dryland beans around there.”
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