Outlook For Corn And Soybeans Isn’t Great, But It Could Have Been Worse

May 15, 2020

By Amy Mayer

At the start of 2020, the agricultural economy was poised for a good year.

Then came COVID-19 and like almost every other sector, it tanked. But Chad Hart, an economist at Iowa State University, says that solid footing is still the foundation for an outlook that is not all doom and gloom.

Hart says the World Agricultural Supply and Demand Estimates that the U.S Department of Agriculture released this week suggest the growing season and 2020 harvest may be tough, but not devastating. Higher yields will offset lower prices. And Hart says COVID recovery should bring about some of the relief from trade tensions that economists anticipated.

“They’re looking for that strength to still be there, to return, as we reopen the economy, as we get the global economy moving along,” he says.

Lower prices for corn and soybeans may draw some new or less common uses for the crop, especially if the harvest is as big as predicted.

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Video: Not only is corn getting sweatier, it's getting smarter

Over the past several weeks, much of the U.S. Midwest has experienced prolonged episodes of extreme heat, a trend also observed in other major corn-producing regions of North America such as eastern South Dakota, southern Ontario, and parts of Kansas and Missouri. These high-temperature events can place significant physiological stress on maize (Zea mays L.), which is cultivated on approximately 90 million acres across the United States, with leading production in Iowa, Illinois, Nebraska, and Minnesota. Like all maize, Bayer’s PRECEON™ Smart Corn System is subject to transpiration-driven water loss under high heat. However, this system incorporates agronomic traits designed to improve standability through enhanced stalk strength, thereby reducing lodging risk during stress conditions. Furthermore, the system supports precision agriculture practices by enabling more targeted fertilizer and crop protection applications. This approach not only helps to optimize input efficiency but also contributes to maintaining or increasing yield potential under variable environmental stresses such as heat waves, which are becoming more frequent in corn belt and fringe production regions.