(REMSEN, IA) It's not what most farmers expected but this year has produced a pretty amazing soybean and corn crop. Many we're afraid the drought of 2012 would carry over to this year
but it didn't and the final product is coming into focus as farmers begin harvesting.
Fall is here - the time when farmers start seeing dollar signs, getting ready to cash in on all their hard work.
Last year, soybeans and corn suffered under extreme conditions. What many refer to as the drought of 2012. The average soybean yield was about 40 bushels per acre.
"This year now, we're probably, maybe overall we could be averaging close to upper 50's lower 60's for the whole area. Quite an improvement from year to year," said Lanny Hustedt, Grain Merchandiser at the Farmers Coop in Remsen.
Iowa is estimated to produce more than 400 million bushels of soybeans. It's no record but it's certainly better than last year.
You can see it in the numbers too. The average dollar amount per bushel this year is about $12.50. That's a buck a half less than it was last year because of the extra supply.
"Last year was a very dry year, we didn't get a lot of moisture over the winter, we went into the spring very dry and there was a lot of concern about this year and we went out and planted, and to be honest there was a lot of concern there would be a second dry year," said Hustedt.
But the finished product - lots and lots of beans. The same can be said for corn but the difference in price is pretty large compared to last year. The average dollar amount per bushel this year is about $4.50 almost $3 less than it was last year.
"It's a significant drop and farmers have been reluctant to sell. They basically have sticker shock right now; they haven't adjusted to it yet. I think they're holding onto the corn because they think the price will get better down the road. Now will it? That would be a good question," he said.
Hustedt says many farmers still have crop insurance which gives them revenue protection this year but notes next year's insurance payout could be substantially less.
The folks at the Farmers Co-op of Remsen say about 40% of the soybean crop in their area has been harvested. They think the harvest could be wrapped up next week if the weather cooperates.