Fuel prices may affect farmers’ planting decisions

WASHINGTON

Energy inflation might be affecting planting decisions. A March U.S. Agriculture Department survey found farmers intend to plant 5% less corn and 7% more soybeans this year than in 2005.

One possible factor is that soybeans, which can convert nitrogen from the atmosphere, cost much less than corn to plant and fertilize. Pricey natural gas accounts for the most of the cost of producing nitrogen fertilizer.