Uncertain U.S. Bean Acreage Outlook

WASHINGTON - Feb 26/07 - SNS -- Keen interest in growing crops for use by the bio-fuel sector is resulting in a more fluid acreage situation in the United States than has been the case for many years, says USDA's Gary Lucier of the Economic Research Services February Vegetables and Melons Outlook.

Broad price strength for most competing field crops, including corn and soybeans. has resulting in an unusual level of uncertainty over seeded area prospects for the 2007 dry edible bean crop.

"The primary impetus for higher crop prices is rising demand for corn from the ethanol industry. The apparent long-term emphasis on ethanol fuel blends mean strong intercrop acreage competition, elevated commodity prices, and muddied market signals—perhaps for longer than just 2007," Lucier says.

"How long may depend on such things as oil prices, advances in ethanol technology (to use more than just grain corn), and whether USDA allows farms an early release from the Conservation Reserve Program (which idles less productive, environmentally sensitive land).

"The early release could boost area available for crop production (although average yield may be reduced) as soon as the 2008 season and help ease pressure on crops like dry beans that are not generally used by the ethanol industry."

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