The U.S. Department of Agriculture is forecasting bumper crops in both corn and soybeans this year.

In the USDA October yield forecast, corn is estimated to be at 9.74 billion bushels, which is up 4 percent from 1997. Farmers will also produce an estimated 2.77 billion bushels of soybeans, which is up 2 percent from 1997.

“The growing conditions were so good because we had adequate moisture this year, which helped the corn grow tremendously,” said Terry Wicks, branch manager of the Heart of Iowa Co-op of Gilbert. “In some places, however, we had an over-abundance of moisture; it all depends on how many ponds there are. The timeliness of planting in the spring helped out too.”

Iowa produces 18 percent of the nation’s total corn. The state will produce 1.77 billion bushels of corn, up from 1.66 billion in 1997, and is the second largest harvest in history.

The soybean harvest also will be the largest ever, and Iowa will produce a record 481 million bushels, which represents 17 percent of the nation’s soybean crop.

Soybean yields are forecasted to be at 46 bushels per acre; corn is projected to be at 143 bushels per acre.

Story County should be in the upper half of production, Wicks said.

“I would say that Story County will come out a little higher than the state as a whole,” he said. “You can even see 50-60 bushel difference on some farms in Story County.”

Because of the overwhelming supply, commodity prices have fallen drastically, said Roger Ginder, professor of agricultural economics.

“It is partly because the supply is good and there is not much in demand,” Ginder said. “There are many factors. One is that we are exporting less, partly because of the Asian financial crisis. Because of this we are left with a bigger supply, thus driving down prices.”

The low prices are hitting farmers hard, Wicks said.

“A lot of [farmers] are unhappy. It is hard to harvest something that you will not make money on and then sell it below production cost,” he said. “Under ideal conditions, I would have to estimate that farmers would like to see beans at $6 a bushel and corn at $2.25. That would be where they would make a little money besides the production cost.”

The current farm crisis is very important to the country, said Robert Jolly, ISU professor and extension economist in the Department of Economics in a press release.

“This isn’t a repeat of the 1980s when we struggled with excessive debt, high interest rates and crashing asset values — but the potential for increased financial stress is very real,” Jolly said.

It is hard to tell where this will lead, Ginder said.

“It is really difficult to tell whether this trend will continue; weather is such an important factor,” he said. “If we were to have a dry year next year, output would be reduced. If we have another bumper crop, you could see the problem get worse.”