October 24, 2018

For the second time in Iowa, corn yields broke 200 bushels per acre. However, the money it costs Iowa farmers to grow their crops exceeds the revenue they get from selling them. These facts and more are detailed in a handbook “2018 Iowa Agricultural Statistics” from the Iowa office of USDA’s National Agricultural Statistics Services.
According to the 2018 edition of the handbook, the 2016-17 marketing year average price for corn was $3.30 per bushel, down 6% from the previous year. However, it costs farmers $3.48 per bushel to grow that corn. Although soybean prices were up 5% to $9.34 per bushel, that’s still below the $9.46 production cost.
Trends in Iowa ag
Another trend the numbers show is a big increase in on-farm storage capacity. Because the gap between the cash price of grain and the futures price has been wide, farmers have built more bins, and Iowa now has record on-farm storage capacity.
Many farmers are opting to store their grain on-farm instead of at their local co-op to cut storage costs until price margins are more certain. Farmers are also trying to tackle grain farming’s biggest expenses: land and seed prices.
With over half of Iowa’s farmland now cash-rented, farmers are trying to work out fair rental rates with landlords. Average cash rents in Iowa dropped from $230 an acre to $219 from 2017 to 2018. Also, farmers are cutting costs by selecting seed varieties with fewer traits. For example, farmers may forgo purchasing seed with an added trait like Bt to protect against insects. In 2009, 14% of farmers purchased Bt corn; in 2018, only 3% did.
NASS gathers survey information
The Iowa Ag Statistics book shows that Iowa continues to be a national leader in pig farming with 22.8 million hogs in the state. Pig numbers continue to increase every year by 3% to 5%, which is being supported by enlarged cold-storage capacity and expanded employee shifts at Iowa packing plants.
From 2016 to 2017, Iowa’s plants produced an additional 174 million pounds of red meat: beef, mutton and pork. Iowa also continues to be the nation’s No. 1 egg producer. Bouncing back from the avian influenza outbreak, egg producers in 2017 produced 2.35 million more eggs than in 2016.
“While we continue to see uncertainty in the ag markets and continued negotiations on trade agreements, Iowa’s farmers continue to forge ahead,” says Dave Miller, director of commodity services for Iowa Farm Bureau. “Despite challenges, farmers are finding ways to improve their land through conservation efforts and to add value to their farms with livestock.”
The stats book can be ordered for $12 from Iowa Farm Bureau, Marketing and Communications Division, 5400 University Ave., West Des Moines, IA 50266. Make checks payable to Iowa Farm Bureau. Partnering with NASS on this project, IFB helps pay for the cost of producing and distributing the handbook each year.
Source: NASS, Iowa Farm Bureau
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