US CBO projects record 2013 corn crop, recovery from drought

WASHINGTON Tue Feb 5, 2013 4:16pm EST

WASHINGTON Feb 5 (Reuters) - U.S. farmers will plant 97 million acres of corn and 77 million acres of soybeans this spring, enough to produce a record corn crop and end three years of razor-thin supplies, the Congressional Budget Office projected on Tuesday.

CBO projected a soybean crop of 3.306 billion bushels, the third-largest on record. The projections assume normal weather and yields despite the lingering effects of the 2012 drought, the worst in 56 years.

Growers will collect a record $16 billion in crop insurance indemnities for 2012 losses, CBO estimated in documents that forecast spending by the Agriculture Department and the rest of the federal government. Crop insurers would lose $5 billion on their 2012 policies, the first money-losing year in a decade.

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