FarmPolicy

November 21, 2019

Ag Economy; Policy Issues; Biofuels; Immigration- Budget; and, Regulations

Agricultural Economy

Donnelle Eller reported on the front page of yesterday’s Des Moines Register that, “As good as the outlook is for cattle producers over the next couple of years, it is about as grim for Iowa corn and soybean growers, thanks to tumbling commodity prices and the stubbornly high cost of growing crops.

Lower grain prices have helped cattle, pork and other livestock producers post improved profits. But the price slump also creates economic uncertainty in a state that leads the nation in corn production and ranks second in soybeans. As Iowa grain farmers brace for potential losses, leaders ask: How much will farm income drop, and how far will it ripple?”

The article noted that, “Chad Hart, an Iowa State University farm economist, estimates that grain production losses in Iowa this year could be as high as $2.6 billion, based on year-end pricing. Farmers who nailed down higher prices earlier in the year will fare better. Overall, improved profits from livestock producers are expected to more than offset grain losses.”

The Register article added that, “Hart agreed that government subsidies will help mute the effect of lower prices and compensate some Iowa farmers for crop damage this year, such as heavy spring rains in north Iowa. ‘But it doesn’t get you out of the hole,’ he said. ‘It just makes the hole less deep.’”

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