Farm Progress America, January 1, 2024

Happy New Year!

Mike Pearson takes a look at the potential ahead in 2024 for row crop producers.

Farm Futures Grains Analyst Jacqueline Holland gives a preview of what could be ahead for corn and soybean producers.

In 2023, the net income for corn and soybeans has been $151.1 billion-- that's down from $188.9 billion in 2022-- but it was still profitable for producers.

However, there are issues growers need to be aware of including South America's soy production. Brazil has a big influence in the corn and soybean markets. Despite hot and dry conditions, 2024 is on track for Brazil to set a soybean production record.

Delays in getting the seed into the ground in South America could provide export opportunities for U.S.A. growers.

China has a big need to import record amounts of soybeans for their swine industry. However, a disappointing Lunar holiday for domestic swine demand and other consumer impacts could shrink the demand for soybeans if the swine herd shrinks.

However, when it comes to corn, China could overtake Mexico for corn imports. And China is working to increase corn production.

About 51 percent of United States exports go to Mexico.

Other impacts to watch in 2024 include:

Potential interest cuts by the Federal Reserve could offer support to land prices .

Lower fertilizer prices.

Higher Farm income-- all three of these could help farmers combat higher costs.

However, 2024 profit margin projections are under scrutiny. Soybeans could be a safer bet for growers in 2024.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness .