Heat last week was hard on all crops, especially those that had shown earlier stress. After Labor Day, we will spend more time in fields to see how yield potential is finishing out. Concerns for corn are depth and weight of kernels, along with tip-back on ear tips. Beans are in pod fill stages. Some have high potential while other fields have much less pod development with many pods only containing two beans.
Corn prices are range-bound while beans have staged a 70-cent rally in the past two weeks. Pro Farmer’s annual crop tour described west-central Iowa as a “donut hole” or a “nothing sandwich” meaning the northwest and southwest districts looked good but west-central Iowa contained “nothing”. Not exactly, but not a flourishing area this year, as a general statement.
Crop revenue insurance will pay on many cornfields. Last February locked in an insured price of $5.91 per bushel times insured bushels. Actual revenue calculations versus insured revenue will generate payments. Some soybean fields will, but it appears a lower percentage will pay as compared to corn.
Land sales continue to ramp up. Sales are generally called steady with earlier in 2023; however, sellers must be realistic with expectations. The market peaked in spring/summer 2022. Interest rates are higher, crop prices are lower, and many land buyers have one or two recent purchases to digest already. There is still good depth across the market, but careful analysis of the farm and neighborhood is invaluable.
Lease termination deadline is September 1st. Proper notification is necessary if you are contemplating any changes.
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