Northwest Iowa Crop Conditions

Drier, warmer weather this week is finally allowing for widespread planting locally. Many are as are still too wet to plant, but farmers are forced to plant into less than ideal conditions at this point. USDA’s June 3rd Crop Progress Report showstheU.S. corn crop is 67% planted compared to 96% is the 5-year average and soybeans are 39% planted nationally compared to 79% 5-yearaverage. This is the slowest pace on record, which is amazing considering how much equipment
has been upgraded over the past 10 years. If given an opportunity farmers could finish planting quickly, but at this point it’s safe to say the crop size has already been significantly reduced nationally.

In this region we are generally ahead of the national averages on planting. I estimate we are down to the last 25% or so to plant on corn and the last 40% on soybeans (which is still significant for June 5th). Areas farther south in our region are doing better than to the north.Farms with good natural drainage or plenty of tile have a big advantage. Many farms were planted into mud which is not typically a good decision. However, this year that has been the only choice for many.

Corn that was able to be planted in decent conditions back in late-April to mid-May looksreasonably good. It is small for this time of year, but the stands are surprisingly consistent(except for wet spots). It will be important to get a few small rains this month to help withemergence and root development. We have seen major problems in the past when wet springs that abruptly turn dry. Potential Nitrogen fertilizer loss will be another issue to watch for. Thenitrogen may have leached deeper into well drained soil, or in poorly drained soil it can be lostfrom denitrification (conversion to N gases with saturated soil).

Grain prices are highly volatile because of these planting delays/weather problems. Corn and soybean prices increased about 50 cents over the past three weeks. Prices are settling back sofar this week. Local corn prices surpassed $4.00 per bushel last week, which we haven’t seen in4 years. The local soybean bid was briefly over $8.00 per bushel which is still not great. Last yearat this time soybean prices were running from $9.30 to $9.50 per bushel. Ending stocks of corn
will tighten up because of the reduced acres and yields. It’s a little too early to call on soybeans.Hard to say how many acres will shift to soybeans vs prevent plant. The biggest question to me is how the demand and exports for grains will hold up with higher prices during continued trade issues.