What’s in store for the 2022 Minnesota harvest season? So far, crop outputs are looking healthy with commodity prices to match. But as always, there's so much more to it, as we'll highlight below.
What are Minnesota crop conditions in 2022?
As harvest time nears, farmers like you can say you’ll have something to show for it. Because as of mid-September, most Minnesota producers gave solid marks for their crop conditions, with the majority rating their corn and beans as “good” with “fair” being the second most given answer.
Minnesota corn crop ratings
- 77% good to fair
- 14% excellent
- 9% poor to very poor
Minnesota soybean crop ratings
- 80% good to fair
- 13% excellent
- 7% poor to very poor
Source: Minnesota Ag News Crop Progress and Condition Report, September 12, 2022
Compared to crop conditions in 2021, where a quarter of farmers reported poor to very poor conditions, this is a big improvement.
Crop maturing is a few days behind the five-year average. Corn maturity is at 8%, a week behind. The rate of soybeans dropping leaves was at 6%, which is 10 days behind average.
Despite the dry summer, we’ve made up some of the rainfall in August, and it shows as 67% of producers across Minnesota rate their topsoil moisture as adequate.
What does the corn and soybean market look like?
The USDA’s most recent World Agricultural Supply and Demand Estimates forecast a lower corn supply for the start of the new marketing year, with reduced exports and corn used for ethanol, with a drop in production and yields. Forecast yields for soybeans are also down slightly by 3% compared to a month ago.
At this point, 2022 finds corn market prices consistently in the high $6 to $7 range, a dollar increase from 2021 and roughly double the range of prices between 2014 and 2020. Soybeans are in the neighborhood of $16 per bushel, also a nine-year high.
The verdict: Decent yields, economic challenges?
Decent yields, tighter supplies and stable market prices would make any producer happy with the production year.
But when you take in the full economic picture — inflation, interest rates elevated from a year ago, a tight labor market, stiff competition for exports coming from South America, analysts forecasting a global recession — healthy margins are far from guaranteed.
The outcome of the 2022 growing season now rides on good weather and steady commodity prices. Hopefully, there will be something left to celebrate.
Expertise you can trust
At Minnwest Bank, our agri-business bankers have gained the trust of growers across Minnesota. That’s because they’re also farmers and producers who live and work in their community. We know what’s at stake and we have the resources to help you find solutions.
Get expertise you can trust to help your farm thrive. Make an appointment with a Minnwest ag banker today!