Southwest Iowa Crop Conditions

This area is very fortunate to have experienced typical planting progress, for the most part. For this year, that means this area was well ahead of most other areas. Crops are growing slowly due to lack of warm, sunny days. Roots are lacking air in many fields, as well. The ideal mix of 50% soil matter, 25% water and 25% air has not been in that balance this spring. Overall, most in this area should feel pretty good about crop prospects.

Prices took off with the delay in US planting progress, now the slowest pace on record. This afternoon’s report placed the US at 67% planted, with Iowa at 80% but major states like Illinois at 45%, Indiana at 31%, Ohio at 33%, and South Dakota at 44%. This took cash corn to just over$4.00 last week for one of the few times in the past five years, and took new-crop bids into the$4.15 to $4.20 range, depending on location. Some are calling for much higher prices for new-crop, but don’t forget the old “bird in the hand” for some bushels. Soybeans are 39% planted with Iowa at 41%. It is not nearly as late for soybean planting as it is for corn planting at this point. Bean prices continue to be pulled upward with corn, finally getting back to $8.00 last week.

Lots of political things right now that could or will affect farmers’ incomes, including potential MFP payments, prevent planting, disaster package, possible tariffs with Mexico (our largest corn customer), and the ongoing tariffs with China. Toss in African Swine Flu which has taken out10% of China’s hog herd. Lots of rumors floating around how MFP will be calculated and paid out. It’s still up in the air