Harvest is concluded except for a few fields. Many fields have received fertilizer applications this fall under excellent field conditions. Those who booked fertilizer earlier have a price advantage over those paying now as all products, particularly nitrogen, have moved much higher in the past 2-3 months. Seed costs have maintained reasonable price increases. Herbicide prices are normally posted in December, although we know some products will be considerably higher as well.
Crop prices have moved higher as harvest has been concluding during the month. Farmers will hold for higher prices on crops stored on-farm. With excellent yields and excellent current prices, farm revenue is very good for 2021. Revenue for 2022 will be impacted by higher production costs. The acreage mix of corn and soybeans in Iowa rarely changes by that much; however, the fringe areas of the Corn Belt can consider other crops which are also posting very high prices, including wheat, cotton, and even oats. Prices may need to move higher to attract sufficient acreages of each in 2022. There are roughly 220 million acres dedicated to corn, soybeans, and some type of what in the US each year. Corn, soybeans, wheat, cotton, and hay account for 90% of US crop acreage.
Land values continue to post very strong results, especially for top-quality land. The quarterly survey of banker's opinions from the Chicago Federal Reserve Bank noted a 28% gain in "good" western Iowa farmland over the past 12 months (as of October 1st). We generally agree with that figure, although some areas have appreciated faster than that.
We wish you a wonderful and safe Thanksgiving holiday!
Please click on the links below to view the past pdf’s of our Northwest Crop Conditions reports.