Every year, farmers must decide what to plant. There are many factors to consider when making this decision. For the 2020 season, these decisions are compounded by a dramatic decline in market prices and, because of these low prices, net returns are expected to be slim. The probability of negative returns is increased.
Prices have declined in large part due to demand and market uncertainties caused by the COVID-19 virus pandemic. Thus far this year, corn has declined almost 18%, cotton about 21%, and soybeans almost 14%.
Farmers make planting decisions based on many factors. Chief among these are how do net returns compare from one crop to the next. The comparison depends on what yield you expect, what price you expect, and what the variable costs are.
Don Shurley, UGA Emeritus Professor of Cotton Economics compares row crop options for 2020 in the following publication:
Factors to Consider for What to Plant in 2020
