Record Soy Crop Ahead?
22 December 2008 Thank El Niño. Growers in Argentina could be looking at the 2006/07 growing season as one of the best on record; if it is, they’ll have El Niño to thank for it. Traditionally, extended El Niño weather patterns, such as those in 1986/87, 1992/93, 1997/98, and 2002/03 have been followed by large South American corn crops. With steady rain and cool temperatures continuing, Argentina can expect corn and soybean crops higher than previous estimates.
Of course, the weather can’t take all the credit, especially in soybean production. Soybean producers planted a record 16.05 million hectares (Ha) of soybeans for the 2006/07 season; this record acreage combined with El Niño’s excellent growing conditions should produce a record soybean harvest for Argentina. While the USDA Foreign Agricultural Service predicts soybean totals of 42.5 million tonnes, other estimates foresee a crop as large as 45 million tonnes. As in 2005/06 — when Argentina had record soybean yields with minimal loss — soybean rust is not expected to be a problem this year.
Soybeans Growing Stronger
Over the past 10 years, Argentina has seen its cultivated area grow from less than 16 million Ha to approximately 28 million Ha. The strong growth in acreage can be attributed to genetically modified soybeans with shorter growing cycles, and to no-till farming practices that increase farming on previously dry land.
GM soybeans can be double-cropped in areas where there was once only one crop per growing season; with a shortened season in Southern Argentina, shorter maturity varieties are used, as well as experimental intercropping — the practice of growing soybeans with another crop, such as wheat.
No-till farming protects the soil from erosion and structural breakdown, and untouched crop residues help both rain and irrigation water infiltrate the soil, limit evaporation, and conserve water. Not tilling also reduces production costs.
Soybeans are becoming more profitable than other crops, and as seen by the amount of acreage they’re taking from sunflower, wheat, and even corn, farmers are realizing it. While the reasons for transitioning to soybeans are many, the main reason is obvious: Increased profitability over other crops. Soybeans require less fertlizer than either corn or wheat, for example. They’re also planted later than corn, and therefore less likely to suffer weather-related damage such as that due to frost or extreme heat. Estimates from a 2006 USDA Foreign Agricultural Service Commodity Intelligence Report provide approximate production costs (excluding land rent and contracted harvesting services) in dollars per Ha for the following crops in Argentina: Corn–US $222; Wheat–US $167; Sunflower–US $112; First-Crop Soybeans–US $117; and Second-Crop Soybeans–US $81.
Considering the selling price of each commodity on the market, soybean production costs are well worth the investment.
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