WASHINGTON (AP)--U.S. farmers are afraid of a rapidly spreading soybean disease and are anticipating lower prices, so they are planting fewer soybeans despite a drought that has wreaked havoc on crops in Brazil, the Americans' biggest competitor.

Growers intend to plant soybeans on 73.9 million acres, down 2 percent from last year's record high, the U.S. Department of Agriculture said March 30.

Soybeans are vital to U.S. trade. At $8 billion to $9 billion a year, exports of soybeans are worth more than any other crop.

Growers are holding their breath to see what happens with Asian soybean rust. The disease found throughout South America did not arrive in the United States until late last year.

Johnny Dodson, a soybean grower in Halls, Tenn., has bought fungicide and may upgrade the sprayer for his fields. Spraying the treatment adds to farmers' costs, but it is the only way to fight the soybean rust.

"It takes profit away pretty quick here in the South," Dodson said.

The fungus rust spreads on soybean leaves in rusty-colored blotches, weakening the plant and drastically reducing yields. Of the two species known to exist, Asian soybean rust is more aggressive and widespread.

Some of Dodson's neighbors are switching some of their plantings to cotton or rice. Dodson, who also grows cotton and corn, is waiting to see what happens.

"Now, there's a lot of unknowns about the rust, and until we get one year of experience in dealing with the rust, I didn't see any need to make any changes," Dodson said.

It does not appear that rust is scaring growers off in large numbers, said Mark Ash of the USDA's Economic Research Service.

"I'm sure some are crossing their fingers and hoping for the best," Ash said.

Concerned about whether farmers are aware of Asian rust, the department surveyed 68,000 farms in the 31 states where soybeans are produced. Nine in 10 soybean growers said they knew about the disease. Still, only one in 10 farmers said it factored into their planting decisions.

The United States accounts for about 40 percent of the world soybean market. Brazil came close to that share in recent years, but drought in the country is worsening and will shave production.

Drought has tightened supplies and improved prices, pushing them into the $6 a bushel range. Still, that is a far cry from the $10 per bushel mark that producers saw last spring.

The biggest declines in soybean plantings are expected in North Dakota and South Dakota and in the Mississippi Delta and Southeast, where rust has already been discovered, the department said.

The government is trying to help farmers prepare for Asian rust, creating a website, www.usda.gov/soybeanrust, that offers advice. The department warned producers recently that their crop insurance may not cover damage from soybean rust if they do not prepare adequately for the disease.

Bob Callanan, spokesman for the American Soybean Association, said farmers "need to take whatever steps are necessary" to protect against the fungus.

Preparing basically means being ready to spray fungicide when it is recommended.

The government also report that the nation's wheat-planted area will drop by 2 percent, to the lowest level since 1972. The total acreage is projected to be 58.6 million.

Corn-planted area is expected to grow 1 percent to 81.4 million, which would make this year's acreage the largest since 1985.

Cotton acreage is also projected to grow by 1 percent over last year, mostly because of an increase in Pima cotton planting. Total cotton plantings should be 13.8 million acres, the department said.

U.S. farmers also will devote less acreage to wheat, but slightly more to cotton and corn crops, the report said.

Date: 4/20/05