Farmland Leasing – Just short of 150 landowners and tenants attended the recent northwest Iowa farmland leasing meetings. If you were able to attend, thank you! A brief summary would include the following Iowa State University survey results:

• Land Values – Average land values across the state of Iowa ($11,411) exceeded the previous inflation-adjusted record set in 2013. The value increased over 20 percent in most northwest Iowa counties, led by the 22.3 percent increase in Sioux County.
• Lease Rates – The average state of Iowa land rent ($279/acre) represented a $23/acre (9 percent) increase. The northwest Iowa Corn Reporting District had the second-highest of the nine districts ($302/acre; 11.8 percent increase).
  It is very important for the reader to look at the complete reports outlining the research and statistics. The meeting agenda and supporting information can largely be found on the Ag Decision Maker website (https://www.extension.iastate.edu/agdm/). Survey results are not meant to replace an individual’s accurate/reliable farm records. Best farm management decisions can be complemented by making comparisons and using the surveys as a guide.
  2023/24 Outlook – Ag markets are best described as a roller-coaster. Daily double-digit market price swings are more the norm than the exception.
  The August 12, 2023, USDA (WASDE) report, the first one this season to adjust statewide yields, had mixed results:
• Corn – Old crop (2022), adjustments resulted in an increase to ending stocks, yet USDA kept their season-average price projection at $6.60/bushel. The new crop (2023) bigger news was the lowering of average yields, partly offset with lower domestic use and exports, resulting in a net lowering of ending stocks. Accordingly, USDA raised the 2023/24 average market price ten cents to a projected $6.90/bushel.
• Soybeans – Similar to corn, average new crop yields were reduced. After all adjustment, ending stocks are projected very tight for 2022, leaving the average market price the same at $14.20 per bushel. Overall tight carryover ending stocks, along with the yield reduction, had USDA increasing their 2023 new crop average market price to $12.70/bushel (up 30 cents from July).
  Staring ahead 60 days to harvest, the escalation to the Ukraine/Russian conflict serves notice for continued volatility to market prices, especially corn. Some recent rains, albeit spotty in northwest Iowa, have contributed to some slight improvement to the drought monitor (https://droughtmonitor.unl.edu/) where any moisture can be a positive yield (weight) factor.
  Protein markets can be categorized as mixed, behind generally slower economic activity and inflationary price pressure across the bulk of the world markets. Pork exports are slightly improved, but beef (lower pounds partly offset with higher prices), and poultry volumes are down. Dairy prices show near-term improved margins, though still well below record milk prices one year ago.
  Federal Reserve Banks / Chicago and Kansas City – As further complement to the above outlook, two federal reserve banks offered the following as their second quarter information was released (https://farmpolicynews.Illinois.edu):
• Farmland value increases are slowing down. For the first time since 2021/Quarter 1, the increase has been single digits.
• Interest rates have increased to the highest levels since 2007/3rd quarter.
• Overall ag conditions are reported as moderating versus a more robust barometer and record Net Farm Income in Crop Year 2021 and 2022.
  As always, please contact me with any questions or feedback at gdwright@iastate.edu or 712-223-1574.