Crop Conditions

A few fields remain to be harvested in the region but they are rare. Dry corn and dry conditions, coupled with fewer bushels to haul, speed up the harvest. We saw yields, which were good to very good in the eastern side of this region, stretching over into Sac County, while the western side in Woodbury and Monona saw mostly poor to very poor yields. Crop revenue insurance will provide some stability to farm incomes.

The weekly Drought Monitor has shown some improvement with this area now ranging from “abnormally dry” along Highway 20 to “severe drought” in southern Monona and Crawford Counties. “Extreme drought” now covers much of eastern Iowa but none of western Iowa.

Corn price continues to sputter along in the $4.50 to $4.70 range at elevators, a little higher at end-users such as ethanol plants and feed mills. Projected carry-over of 2.1 billion bushels is the limiting factor on price. That is nearly 15% of total use. USDA’s November estimate for the season-average price is $4.90. Beans, on the other hand, have a tight closing stocks estimate of 220 million bushels or 5.3% of total use. While USDA projects a $12.90 average, current prices exceed that. Other years with similar ending stocks-to-use ratios have shown good upward price potential.

As is common in dry years, land values were a bit soft pre-harvest then strengthened as harvest comes in better than anticipated. The extra bump in yield is as much a psychological help as it is financial. The result is few more final bids at auction.

Have a wonderful Thanksgiving holiday!