Wedoany.com Report-Apr. 11, A report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture projects that Argentina’s soybean planted area will decrease by 1 million hectares in the 2025-26 marketing year, dropping from 17.5 million hectares to 16.5 million hectares. This reduction follows a shift by farmers back to traditional corn rotations after a soybean-focused season.

The FAS explained that last year’s increase in soybean planting was driven by concerns about leafhopper pests, which reduced corn acreage in several regions. With leafhopper issues proving less severe than expected this year, farmers are resuming typical crop rotations, favoring corn after a soy-heavy cycle.

An FAS representative noted: “With much less prevalence and impact from (the leafhopper) this year than feared, farmers are expected to return crop rotations in favor of corn, a typical rotational pattern following a soy-heavy year.” This adjustment reflects standard agricultural practices in Argentina.

Despite the smaller planted area, Argentina’s soybean output is expected to remain stable at approximately 49.5 million tonnes, supported by a slight improvement in yields. The FAS highlighted that rising production costs are challenging farmers, particularly on rented land, which accounts for over 75% of soybean cultivation. Profit margins, especially for those leasing land, may be very narrow or even negative in the 2025-26 season.

The FAS added: “Production costs for soybeans continue to rise, and margins, particularly on rented land, are expected to be razor-thin or even negative in 2025-26.” Farmers on owned land, making up the remaining 25% of production, face similar cost pressures but may have more flexibility.

With soybean inventories at a six-year high, Argentina anticipates a 17% increase in exports, projecting between 5 million and 6 million tonnes for the 2025-26 marketing year. This growth in exports aligns with steady production and strong global demand for soybeans.

Argentina’s agricultural sector continues to adapt to changing conditions, balancing crop rotations and economic factors to maintain productivity. The shift back to corn highlights farmers’ efforts to optimize land use while addressing pest concerns and market trends.