Northwest Iowa — More predictions point toward gloomy financial times ahead for Iowa farmers as commodity prices trend lower for corn and soybeans. Rod Johansson, an economist with the U-S Department of Agriculture, says those commodity prices have continued to drop and have now reached a crucial point.
Johansson says despite predictions for record or near-record yields, the abysmal prices mean many farmers may have to make some difficult decisions as they plan for the months ahead.
As they head into spring planting season in a few months, some Iowa farmers may chose to leave select plots of land unplanted, as it may cost more to grow a crop than the crop is worth.
Some farmers may have to dip into their rainy day funds to make ends meet. He says the good news is there are back-up plans in place as many farmers have insurance and there are safety net programs built into the Farm Bill.