What is in this article?:
- Georgia ag forecast: Midwestern drought, international demand will play role in this yearâ€™s growing season
- Record corn, soybean yields
• As Georgia farmers move into the international market, global demand, supply and weather patterns have more of an effect on the way they do business.
Record corn, soybean yields
Georgia farmers saw record corn and soybean yields in 2012 and are expected to plant more acres of wheat, corn and soybeans this year.
Corn acreage is expected to reach 450,000 acres in 2013, up from 300,000 acres in 2010. Soybeans are expected to reach 400,000 acres, up from 270,000 acres in 2010. Wheat is expected to reach 350,000 acres, up from 170 acres in 2010.
Most farmers will shift land production away from peanuts. Farmers planted near record acres of peanuts in 2012 and experienced record yields, producing a glut of peanuts that will drive down the price until the market can absorb the surplus.
Farmers are expected to plant about 470,000 acres of peanuts this year, down from 730,000 in 2012.
Peanut exports are expected to rise by 50 percent because of the surplus and the weak dollar, making them affordable for the rest of the world.
Cotton prices will be dictated by world cotton stocks, and whether Chinese cotton traders decide to retain or sell their large stockpile of cotton. If they hold on to their cotton, prices will remain stable at between 75 to 85 cents a pound. If they sell stocks, prices could sink to between 65 and 75 cents per pound.
Georgia farmers will likely plant about 15 percent fewer acres of cotton in 2013. Cotton acreage rose to 1.6 million acres in 2011, following a $2 a pound price spike in 2010. With prices decreasing, acreage fell to 1.29 million acres in 2012. Planted acreage for 2013 is predicted to be 1.2 million acres.
With grain prices high and hay in short supply last year, ranchers in the Midwest and parts of Georgia sold off parts of their cattle herds. Therefore, the number of cattle is expected to stay low in 2013.
Despite expanding international demand for beef and relatively short supplies, beef prices should stay fairly stable in 2013, but expect a sharp rise in 2014.
Milk prices will stay at 2012 levels or rise slightly, depending on the price of grain throughout the year.
Poultry companies are expected to place slightly more broiler chicks in production in 2013, but supplies will be kept stable enough to maintain slightly higher prices. Broilers should go for between 90 and 96 cents a pound this year, up from about 86 cents a pound.