While US farmers debate 2022 crop management plans amid record high input prices, South American farmers are making those decisions now which could impact their crop yields.
Kevin McNew, Chief Economist for the Farmers Business Network says with chemicals like glyphosate jumping from $14 to $50 per gallon in the past year, many South American farmers are minimizing crop inputs.
“Brazilian farmers are more likely to spend on their soy crop and less likely to spend on that second season safrinha corn crop, so when you ask me about yield drag or yield risk, I think it probably plays out more on the second season safrinha corn crop.”
McNew says even if Brazil ends with a smaller corn crop, he expects a large acreage shift to soybeans in the US next year, similar to what happened in 2008.
