Farmers run risks to plant double-crop soybeans

CHICAGO (Reuters) - High cash prices for soy were causing farmers to take greater risks than usual as they worked to plant soybeans in fields where they have recently harvested winter wheat, grain dealers and crop consultants said.

Many growers were planting these double-crop soybeans later in the year than usual, and some farmers were sowing despite expectations for severely reduced yields.

"It is taking more of a gamble. But, if you have got a good premium, it could still well be a profitable option," said Richard Baylis of Miles Opti-Crop, a crop consulting and management firm. "There is still good potential to make money right now, so people have planted a little bit later than usual."

Some farmers in southern Indiana were still seeding soybeans this week, Baylis said. Midwest farmers typically aim to have their double-crop soybeans planted by July 10 at the latest.

Soybeans that are planted late run the risk of being damaged by frost, if they are not fully mature by the time cold weather sets in during the fall.

Wet conditions around the U.S. Midwest this spring delayed the winter wheat harvest in many areas.

The U.S. winter wheat harvest was 62 percent complete as of July 13, 8 percentage points below the five-year average, according to U.S. Agriculture Department data.

A year ago, the winter wheat harvest was 67 percent complete.

In northern Ohio, some growers cut their wheat when it was still wet to ensure that they would have enough time to plant soybeans, according to a grain dealer at an elevator in that area.

Those farmers either had to pay to have their wheat dried or accept a monetary penalty from elevators and processors where they were delivering their crop.

"They are figuring that $15 per bushel soybeans will soothe their pain a little bit," the northern Ohio dealer said.

The high prices also were causing farmers to plant double-crop soybeans in less-than-ideal conditions. Some growers figured that they could still make money, even if their soybean plantings yield only 20 bushels per acre, an eastern rail broker said.

In the South, dry weather was slowing the development of the recently seeded soy, the rail broker said.

But in the Midwest, most double-crop soybeans were generally in good shape, Baylis said.

The wet spring, which delayed seeding, fostered good growing conditions, once the plants were finally in the ground.

(Reporting by Mark Weinraub)