The Seventh District Federal Reserve including Iowa, released its April 2017 Beige Book this week which included commentary on current US agricultural industry conditions. Lower crop prices put further stress on the agricultural sector. Prices of corn, soybean, and wheat all fell during the reporting period. With profit margins looking to be higher for soybeans than for corn, demand for soybean seeds was high. Recent rains delayed the start of corn planting in portions of the District. Additional delays could hurt yields, and, because soybeans are planted later in the season, could further shift the crop mix toward soybeans. Expectations of low incomes for 2017 led to lower farmland values and cash rents for cropland compared with last year. However, land values for higher quality ground and recreational tracts were steady on balance. Milk and hog prices were lower, while egg and cattle prices moved up. Expectations of falling milk prices and rising feed costs led more dairy operations to lock in margins
The March report had indicated prospects for farm income in 2017 improved slightly in January and early February, although the agricultural sector continued to operate under stress.