The U.S. Department of Agriculture recently released predictions regarding agricultural growth through 2019, which should interest those thinking of purchasing farm equipment.
The report, which was released by the USDA's Office of the Chief Economist, is based on a number of assumptions involving global economic growth, which is expected to rebound to an average of 3.3 percent yearly. It also assumes U.S. economic growth will return and will eventually average around 2.7 percent per year.
Along with that, growing populations and an assumed decline in the value of the dollar were taken into account, in addition to other factors.
Given those assumptions, the report stated that corn acreage in the U.S. is expected to be in the range of 88 million to 90 million acres by 2019. It is predicted that demand for corn would continue to grow because of ethanol production and increased exports.
Though soybeans have seen high levels recently, carryover stock of the commodity will reduce the amount planted at first. Once stocks are reduced, plantings should increase and could reach 76 million acres by 2019.
Wheat will experience declines in planting and will stay at around 54 million acres for much of the next 10 years.
While looking at the future, the department also recently released data for 2009's growing season. Last year saw record production levels for both corn and soybeans in the U.S.