Argentine farmers are poised to increase soybean planting in the upcoming 2024/25 season, spurred by challenges faced in corn production and favorable weather conditions for soy. This shift marks a significant change in the country’s agricultural landscape, which could lead to the largest expansion in soybean cultivation in over a decade.
In recent years, corn has increasingly competed with soybeans for planting space in Argentina, the world’s leading exporter of processed soymeal and oil. However, last season’s corn harvest was severely impacted by a devastating leafhopper plague, causing substantial crop losses. With concerns that the insect infestation could return, farmers are opting to reduce the area dedicated to corn by an estimated 2 million hectares (4.9 million acres). Much of this land is expected to be replanted with soybeans.
Cristian Russo, head of agricultural estimates at the Rosario grains exchange, indicated that the shift could significantly boost the soybean planting area. Last year, soy was planted on 16.8 million hectares, but this figure is likely to increase as farmers reassess their crop strategies.
Farmers in northern provinces, including Chaco and Santiago del Estero, are leading this trend. Aníbal Córdoba, a member of a growers group in these regions, noted that his group plans to cut corn planting to just 20-25% of their land, with soybeans filling the gap. This adjustment reflects a broader movement among Argentine farmers to mitigate risks associated with corn.
The move towards soybeans is further encouraged by weather forecasts predicting drier conditions in early September, followed by improved rainfall in October—just in time for the soybean planting season. Soil moisture levels in key farming areas currently remain low, making soybeans a more attractive and viable option.
As Argentina prepares for this significant shift, the global soybean market could see increased supplies, potentially influencing prices that are already subdued. The expansion of soybean planting could be the largest since 2012, underscoring the impact of environmental and economic factors on agricultural decisions.
