For years the wind blew freely through empty concrete silos and flats in the Western Plains. Space was readily available and storage rates were low; many traders figured a lot of space would never be filled again. But a dramatic shift has occurred that's impacting logistics, basis, and should raise storage rates. The Plains farmer has steadily increased corn and soybean acreage, largely at the expense of reduced wheat and sorghum acreage. Plains corn and soybean yields were solid in the late '90s, wheat exports were declining, cattle feeding margins recovered, and cattle numbers climbed steadily in Kansas and Nebraska. Ethanol production grew steadily, with Nebraska a central part of this new demand base. These and other factors nudged Kansas to a milestone in 2010: Corn and soybean acreage now exceeded wheat for the first time in history.
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