Third main acreage enlargement in previous 50 years underway
An ag economist says international harvested acreage has been trending increased since 2020’s higher costs.
David Widmar with Ag Financial Insights tells Brownfield the world has added about an additional 70 million acres into manufacturing for 13 main crops in simply two years.
“That’s a major upturn,” he says. “The final two huge expansions we had have been throughout the Nineteen Seventies and from the mid-2000s to about 2014.”
For perspective, he says that’s not that far off from all the corn or soybean acres within the U.S. harvested final yr.
Widmar says main drivers embrace giant demand for ag merchandise, sturdy profitability, and excessive commodity costs.
“It’s primarily an oilseed enlargement which is totally different than what we noticed within the final enlargement—that was primarily corn pushed,” he explains.
Widmar says Brazil, Russia, Ukraine, and India are the areas with the biggest acreage expansions.