Iowa farmers are getting ready for another tight year. A new survey from Agri-Pulse and the Iowa Soybean Association (ISA) shows that farm incomes are expected to drop again this year, and producers are expected to cut back on several items, including cash rent, fertilizer and farm equipment. Conservation is one of the few areas expected to have an increase in investment.
Slightly over 84 percent of the 153 poll respondents said they expect their farm income to be lower than 2014, with soybean prices trending below $9 per bushel. Thirteen percent of those surveyed expect their incomes to be about the same as last year with only three percent expecting an uptick.
For the most part, farmers expect their yields to be better or at least even with the ten-year state average of 50 bu. per acre. Thirty-five percent reported that their yields would be slightly higher than that 50 bu. per acre, while 26 percent reported yields would be about the same. Nineteen percent predicted their yields would be “significantly higher.”
That’s consistent with the Iowa Crops and Weather report released by the USDA National Agricultural Statistical Service Aug. 24.
“With the rains much of the state received last week most areas have adequate moisture. Crops remain in good condition with 82 percent of corn and 77 percent of soybeans rated as good to excellent,” said Iowa Secretary of Agriculture Bill Northey.
Almost 60 percent of respondents say they plan to curtail farm equipment purchases. That’s bad news for equipment makers, as demonstrated by John Deere as it has cut 2015 profit forecast downward by two points to 21 percent as sinking corn and soybean prices reduce growers’ incomes.
In addition, 47 percent of producers say they plan to cut back on farm rent payments, 40 percent will trim fertilizer applications, 37 percent plan to trim seed purchases and 30 percent plan to reduce crop chemical purchases.