Eastern Iowa Farmer Spring 2021

mother nature
178 bushels per acre, according
to the U.S. Department of
Agriculture’s year-end report.
That’s down significantly from
the 198 bushels per acre harvested
in 2019. Corn for grain
production in Iowa for 2020
was 2.30 billion bushels, down
11% from the previous year.
For Petersen, who’s been
working on a farm ever since
he was a kid, last year’s
weather was a bit unusual,
but part of the ups and downs
of farming. He remembers a
drought when he was in junior
high, for example, and a lot of
things in between.
Part of the lifestyle is adapting
to challenges, he noted.
For him, farming is a family
affair, with his wife, two
sons and his dad (technically
retired) helping out. He also
operates Petersen’s Ag Repair.
“I know you go through
cycles,” he said. “You just get
through the hard times and
keep going.”
Early birds didn’t
get the worm
Despite a minor drought,
120 mph winds, early harvest,
and yields, there was one more
variable to add: Markets.
And vary did they ever.
Grain prices have skyrocketed
since August.
“No one would have
guessed in July and August
that markets would have gone
up as much as they have,” said
Ryan Drollette, farm management
specialist with the Iowa
State Extension Office.
Drollette keeps a close eye
on commodity markets, both
domestic and global, and said
a lot of puzzle pieces fell into
place at the right time.
The United States’ crop
overproduction in previous
years, Drollette said, cooled
demand domestically. However,
the derecho knocked out
enough crop that new-crop
supply diminished, and the
market evened out.
International markets,
though, experienced an uptick
in demand fed by, among other
things, unfavorable growing
weather in Brazil and a movement
in China to significantly
bolster its hog population.
“China had stepped away
for a while, but now they
need us more than ever and
are coming back to the table,”
Bullock said. “It’s looking
pretty good.”
Drollette said this year,
China already has 400 million
bushel of corn slotted for export.
Globally, Drollette said
the USDA expects 2.5 billion
bushel of corn to be export
this year, which is up significantly
from the 1.7 billion
bushels from last year.
The same can be said for
soybeans. Chinese imports of
Iowa soybeans have increased
196% in the last several
months, Drollette said. He also
pointed out that the U.S. is
sending millions of bushels of
beans to Mexico, the European
Union, Egypt, Taiwan and
Indonesia, and that U.S. exports
of soybeans are expected
to increase from 3.9 billion
bushels to 4.5 billion bushels
this year.
“For export sales, right now
we are at 2.1 billion bushel
of beans that are slotted to be
exported, compared to last
year at 1 billion. The level of
bushels committed to going
out of the country is tremendous.”
The bottom line is, well, a
positive bottom line — at least
for some.
Producers who waited to
price their corn until late in
the season are reaping the
benefits of that late boon.
Drollette said that dynamic is
not normal.
Bean futures say prices
could eclipse $12 per bushel,
Drollette said. Back in August
they hovered between $8.70
and $9.
“That’s just outstanding,”
he said. n
— Nancy Mayfield contributed
to this report.
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eifarmer.com spring 2021 | Eastern Iowa Farmer 61