USDA Yield Projections September 2017

The USDA yield estimates have continued to climb over the latter part of the summer. USDA meteorologist Brad Rippey said, “You should never be surprised about these late season bumps in soybean numbers.” We would have to agree, soybeans can really add value late in the year with adequate rain and decent heat. Iowa Land Company’s farm management team has seen a solid push in bean yields throughout the northwest, northcentral and the north east. We did have a farm management advisor note, “southcentral Iowa is still being heavily impacted by the drought conditions. Some farms in Wayne, Clarke, and Decatur Counties are going to be pursuing a lose this year on cash crop. We are seeing some estimated yields in the mid to upper 20’s on beans and 90-95 bushel corn in places where there just hasn’t been timely rains.” As far as corn goes we think the USDA is forecasted a bit high, after all said in done the numbers will present themselves. Iowa Land Company’s vote it high on corn and low on beans.

Supply and demand, a term that is heard across business in different commodities. At the end of the day the term has the same approach, here is our supply now where is the demand? Currently we have a huge supply and increasing demand. For prices to rise for cash crop we need to burn through last years supply. Iowa farm management advisors all agree if we can stay steady with these exports we are seeing we can burn through old crop mellow out the downturn in the market and begin to see cash crops increase into 2018. The challenge everybody can see, if we are going to grow more grain we have to grow demand. This market cannot reply on just a weather disaster here or there.

September 2017 Edition

Iowa Land Company Farm Management