WASHINGTON (Reuters) — Farmers who participated in U.S. crop subsidy programs reported “prevented plantings” of 3.573 million acres of corn and 1.687 million acres of soybeans for 2013, the Department of Agriculture said on Tuesday.
“We did see the prevent planted acres go up a little and the numbers are probably a little bit supportive to the market,” said Sterling Smith, futures specialist for Citigroup.
On Tuesday morning, Chicago Board of Trade new-crop December corn futures were up seven cents per bushel and new-crop November soybeans were up 12 cents per bushel.
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“These numbers shouldn’t be viewed as the end-all or be-all for acres and are only a part of the formula that USDA will use to determine final acreage for this year,” Smith said.
Producers enrolled in subsidy programs for 2013 reported planted acreage, including failed acres, at 91.428 million of corn and 74.659 million of soybeans.
Producers who enroll in several Farm Services Agency programs must submit to the USDA an annual report regarding all cropland use on their farms.
The USDA uses the information as an element in its crop estimates, which cover all farms, not just those that participate in the farm program.
In 2012, for example, farmers under the subsidy umbrella reported 8.8 percent fewer corn acres than the USDA’s estimate at the end of the crop year.
