U.S. Bean Area Should Rise in 2012
WASHINGTON - Oct 28/11 - SNS -- Dry edible bean acreage is at its lowest level since 1921, contributing to higher average grower bids and asking prices for most classes, notes Gary Lucier of the USDA's Economic Research Service in the latest Vegetables and Melons Outlook report.
Lucier says that after adjusting for inflation, "this year's season average dry bean grower price is expected to be the highest since 1989.
"Given these observed and expected high dry bean prices, the knee jerk reaction would call for 2 million acres in 2012. However, the reality is that next spring, even if all dry bean prices average a record-high $44 per cwt (100 pounds), the industry could still be facing extreme pressure from corn prices averaging $6.70 per bushel, soybeans over $13 per bushel, and wheat around $7.50 per bushel.
"Thus, at the present time, although the outlook for 2012-13 indicates a strong acreage response for dry beans, the current playing field as outlined above still remains tilted in favor of field crops," he said.
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