Despite one of the driest growing seasons on record, Iowa growers continue to lead the nation in corn and soybean production. On January 11, 2013 USDA issued its annual crop production summary for 2012. The final estimate of 137 bushels per acre for Iowa's corn crop is three bushels below the U.S. Department of Agriculture's December forecast and down from 172 bushels per acre produced in 2011. Iowa's highest ever statewide average corn yield was 182 bushels per acre in 2009. The 137 bushels per acre in 2012 is the lowest yield average for Iowa since 1995.

IOWA CORN CROP: On January 11, 2013 USDA announced its final estimates for crop production in 2012, one of the driest of the last 50 years in the Midwest. USDA trimmed Iowa's 2012 corn yield to 137 bushels per acre, the lowest yield for Iowa since 1995 when the state averaged 123 bushels per acre. Despite drought-reduced yields, Iowa in 2012 still led the nation in both corn and soybean production.

Total Iowa corn production in 2012 was 1.88 billion bushels in Iowa, down from 2.36 billion bushels in 2011. The drought of 2012 turned out to be one of the worst in Iowa and the U.S. in at least 50 years. Iowa's area harvested for grain is estimated at 13.7 million acres in 2012, unchanged from the Department of Agriculture's November estimate and equal to the number of acres harvested in 2011. Corn planted for all purposes in 2012 is estimated at 14.2 million acres in Iowa, up less than 1% from 2011.

Despite drought, Iowa still led nation in both corn and soybean production in 2012

Despite the drought and decreased production of both corn and soybean crops, Iowa still led the nation in corn and bean production in 2012, notes Greg Thessen, director of the Iowa Office of USDA's National Ag Statistics Service in Des Moines. He and his staff helped compile the Crop Production 2012 Summary report released January 11, 2013 by the Department of Agriculture.

Iowa's soybean statewide average yield in 2012 is estimated at 44.5 bushels per acre, down from 51.5 bushels per acre in 2011. The state's total soybean production, estimated by USDA at 413.8 million bushels, declined from 475.3 million bushels produced in 2011.~~~PAGE_BREAK_HERE~~~

Total cash value for Iowa crops, based on the final production figures and last week's prices, figure out to $13.1 billion for corn and $5.64 billion for soybeans. That $18.75 billion total falls short of the $20 billion Iowa farmers generated (on paper anyway) in 2011, but is still above the $12 billion Iowa farmers received for their corn and soybean crop total as recently as 2006. Iowa farmers have also received $1.07 billion in crop insurance damage payments through the first week of January for corn and another $174 million for soybean losses through that date.

Corn production for U.S. in 2012 is estimated down 13% from 2011 crop

Nationally, the Department of Agriculture says corn for grain production in the U.S. for 2012 is estimated at 10.8 billion bushels, up one percent from the November forecast but 13% below 2011. The average yield in the U.S. is estimated at 123.4 bushels per acre. This is up 1.1 bushels from the November forecast but 23.8 bushels per acre below the average yield of 147.2 harvested in 2011. Area harvested for grain is estimated at 87.4 million acres in the U.S., down slightly from the November forecast but up 4% from 2011.

Total U.S. soybean production in 2012 was 3.01 billion bushels, up one percent from the November forecast but down 3% from 2011. The 2012 harvest is the seventh largest U.S. soybean crop on record. Average yield per acre is estimated at 39.6 bushels, three-tenths of a bushel above the November forecast but 2.3 bushels below the 2011 yield. Harvested area is up 3% from 2011 to 76.1 million acres and is the third highest U.S. harvested acreage on record.

Iowa hay production in 2012 down 19% from 3.46 million tons harvested in 2011

* Corn for silage production is estimated at 4.88 million tons for 2012, up 19% from 2011. The silage yield estimate of 15.0 tons per acre is 5.5 tons per acre lower than 2011. Producers in Iowa harvested 325,000 acres of corn for silage, which is 125,000 more acres harvested than in 2011.

* All hay production for the state is estimated at 2.81 million tons for 2012, down 19% from the 3.46 million tons produced in 2011. Iowa hay producers averaged 2.47 tons per acre, down from 3.04 tons per acre in 2011. Harvested acres of all hay, is estimated at 1.14 million acres, unchanged from the previous year.~~~PAGE_BREAK_HERE~~~

* Alfalfa and alfalfa mixtures production is estimated at 2.12 million tons, down 24% from 2011. Iowa producers averaged 2.9 tons per acre of this category of hay in 2012. Harvested acres decreased by 11% from last year, to 730,000 acres. Iowa producers seeded 115,000 acres of alfalfa in 2012, up 35% from the previous year.

* Other hay production in Iowa in 2012 is estimated at 697,000 tons, 4% above the previous year's production. Iowans averaged 1.7 tons per acre, down from 2.1 tons per acre in 2011. Harvested acres of other hay, at 410,000, is up 28% from the previous year. The U.S. Department of Agriculture released Conservation Reserve Program acres last summer for haying and grazing to help livestock producers cope with the drought, which is where most of this "other hay" production increase comes from in these USDA numbers.

Department of Agriculture is forecasting 2012/2013 season average corn price of $6.80 to $8 per bushel

USDA's quarterly Grain Stocks report was also released Jan. 11, 2013 and it shows the amount of corn stored overall in the United States was 17% less on December 1, 2012 than on December 1, 2011. There was a total of 8.03 billion bushels of corn on hand in the U.S. on December 1, 2012—the total from on farm and off farm storage. While corn stored on-farm was 26% lower, this is partially offset as corn stored off-farm was only one percent lower on December 1, 2012 than at the same time in 2011.

Estimates of ending corn stocks for the 2012/2013 marketing year that ends next August 31 were revised to 602 million bushels by the U.S. Department of Agriculture in its forecast released January 11. That's 44 million bushels lower than the previous estimate. Feed and residual use projections were raised 300 million bushels, for a total of 4.45 billion bushels, on projected increases in beef pork and poultry production this year. This was offset to a large degree as export demand forecasts were lowered by 200 million bushels. The season-average farm price now being projected by USDA for the 2012/2013 marketing year is $6.80 to $8.00 per bushel, steadied by forecasts for a strong corn crop to be harvested in South America this year.

For the complete USDA Annual Crop Production report for 2012, click here.

For the January USDA Grain Stocks report, click here.

For the complete USDA global supply and demand estimates report, click here.