The land market normally quiets down in April and May. This year, with the national coronavirus shutdown during that time, the land market in Northwest Iowa was as quiet as it’s been in years. Activity normally begins ticking upward in late June and that is the case this year. More properties are currently listed for sale as compared to going the auction route. Listings make sense in many circumstances during a time of great uncertainty. The seller retains maximum control and does not risk an undesirable outcome at auction. However, high-quality farms still fit the auction route in most cases.
The 2020 planting season was a welcome change to less stressful conditions after the struggles of 2018 and 2019. Farmers in Iowa were nearly done planting corn and soybeans by the first week in May. We have never had so much planting completed in April (especially soybeans). Nationally, planting progress was also ahead of schedule. However, there were problems in parts of the country particularly in North Dakota and parts of the Eastern Corn belt. Early planting can be good or bad depending on the circumstances. If a uniform crop stand is reached early, it’s a great opportunity to gain more energy from the sun (photosynthesis) which should result in higher yields. It essentially lengthens the growing season, allows the crops to reach reproductive stages sooner, and in turn extends the potential grain fill time. The early start may also help push the harvest timeline ahead and reduce corn moisture levels.
2020 seemed to start out with lots of promise. Corn was floating along in the upper $3’s and soybeans in the mid $8’s (local cash bids). The China trade deal was to be signed in mid-January, which would surely push beans over $9.00. Demand was strong for corn. As we approached the normal “selling season” for grain, which is MarchJune, the markets seemed poised for at least some sort of rally that would push corn over $4.00 cash and beans over $9.00. Sales would be finished up at prices we’d consider pretty good compared to the past five years.
