Washington, DC (RI) — Harvest season hasn’t even started in Iowa yet, and forecasts for bumper crops are driving prices down, as soybean farmers in particular fear the value of their commodity will be well below what it costs to produce it. Iowa Senator Chuck Grassley says disruptions in international trade may share part of the blame.
Even with a powerful, damaging derecho in July and near-record rains this summer, the USDA projects Iowa growers are on target for what promises to be the biggest-ever corn crop. That good news is also bad, as the rules of supply and demand dictate that a record crop will mean free-falling prices.
Trump administration tariffs prompted many other nations to enact retaliatory tariffs, some of which were later reversed; however, crucial agreements with a few key trading partners have yet to be ironed out.
Iowa is the nation’s leading corn producer, and it’s among a dozen states that the USDA projects will haul in bin-busting crops this fall. Iowa Ag Secretary Mike Naig says he’s working to find new international markets for Iowa’s top commodities, with trade trips to India, Indonesia, and Vietnam all planned in the coming weeks.
KIWA Staff Photo
