Iowa Soybean Industry Shows Signs of Continued Strength

Iowa Soybean Industry Shows Signs of Continued Strength

USDA's monthly crop production report for October shows an increase in U.S. and Iowa soybean production from September estimate.

USDA's latest monthly crop production report, issued October 11, increased the official estimate of U.S. soybean production for 2012 by approximately 9%. That's 9% above the government's September estimate. The increased supply was matched by USDA economists increasing their expectations for export demand as well as domestic use of U.S. soybeans in the 2012-13 crop marketing year.

BEANS BETTER: USDA now says Iowa will average 43 bushels per acre for soybeans this year, up from an estimate of 39 bushels per acre in September. In 2011 Iowa's soybean yield averaged 50.5 bushels per acre. USDA's October estimate pegs Iowa's average corn yield at 140 bushels per acre, down from 172 bushels per acre in 2011 and below the record 182 bushels per acre produced in 2009.

However, even with this better than expected yield now estimated by USDA, the U.S. will produce 8% fewer soybeans this year than last year. Soybean production for the U.S. will drop from 3.1 billion bushels in 2011 to 2.8 billion bushels this year, according to the October USDA estimate. The U.S. soybean yield for 2012 is expected to average 37.8 bushels per acre, up 2.5 bushels from last month but down 4.1 bushels from last year. Compared with September's USDA estimate, yield forecasts are higher or unchanged across all soybean producing states.

USDA's October crop report pegs Iowa soybean production at 399.5 million bushels, up from the September estimate of 368.1 million. Iowa yield estimates are for an average of 43 bushels per acre compared to last month's estimate of 39 bushels.

Farmers report bean yields turning out better than expected in droughty 2012

"Having heard reports from farmers as they were harvesting, we expected the soybean crop to be larger than the USDA estimated last month," says ISA president Mark Jackson, a farmer from Rose Hill in southeast Iowa. "This is a tribute to soybean farmers' ability to raise a crop despite challenging weather conditions." The Mahaska County farmer adds, "ISA continues to work closely with all sectors of agriculture to lessen the impacts of the extreme fluctuations we experienced in the 2012 crop year."

The average soybean yield for the United States is now estimated at 37.8 bushels per acre, up from the September forecast of 35.3 bushels per acre, notes Jackson. Kirk Leeds, ISA's chief executive officer, says, "We are pleased at this news as it means the U.S. can meet more of the growing demand for soybeans. The world needs more soybeans and Iowa producers are working hard to meet the needs of our livestock farmers and other customers."

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ISA's director of market development Grant Kimberley adds, "We're also seeing demand, which will offset much of the increase in production. Not only are soybean exports higher, but also soybean crush is up, due to strong demand for soybean meal, both domestically as well as for meal exports. In addition, we're seeing a strong demand for soybean oil reflective of the increased use in biodiesel, due to the EPA's raising the biodiesel portion of the Renewable Fuel Standard for 2013."

Iowa's corn yield average for 2012 is estimated at 140 bushels per acre

USDA's October report estimates nationwide corn production at 10.71 billion bushels, down slightly from 10.73 billion in September. The U.S. average corn yield is now estimated at 122 bushels per acre, compared to the September estimate of 122.8 bushels. For Iowa, total corn production is estimated at 1.92 billion bushels, compared to the September report's 1.9 billion bushels. Iowa's average expected yield is estimated at 140 bushels per acre, unchanged from September.

Here's a look at district corn and soybean production estimates for Iowa for 2012, according to USDA's recently released October crop report:

Iowa Corn Crop 2012

District

Thousand Acres Harvested

Bushels/acre

Thousand Bushels

Northwest

North Central

Northeast

West Central

Central

East Central

Southwest

South Central

Southeast

State

1,974

1,974

1,675

2,132

2,017

1,413

1,062

546

907

13,700

157.0

148.0

144.0

130.0

151.0

143.0

119.0

92.0

126.0

140.0

310,000

292,200

241,200

277,200

304,600

202,000

126,300

50,200

114,300

1,918,000

Iowa Soybean Crop 2012

District

Thousand Acres Harvested

Bushels/acre

Thousand Bushels

 

Northwest

North Central

Northeast

West Central

Central

East Central

Southwest

South Central

Southeast

State

1,520

1,168

728

1,395

1,280

888

954

605

752

9,290

44.5

43.5

46.0

39.5

48.0

45.5

39.0

36.0

42.0

43.0

67,650

50,810

33,490

55,110

61,440

40,400

37,210

21,780

31,580

399,470

 

NOTE: Harvested means harvested acres for grain. Yield per acre is rounded.
TAGS: Soybean USDA
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