The ‘Big Beautiful Crop’ 2025

The corn and soybean crops are off to a fantastic start. We have had plentiful moisture and above-average heat/GDU units at most of the locations where we operate.  While we still have plenty of growing season in front of us, we have great potential for crop yields at this juncture.  These conditions are not just localized to our production areas, it is representative of much of the Midwest. With the prospect of a large crop coming, corn and soybean prices have suffered.  The resulting income prospects for row crop production appear challenging. Looking at Iowa State’s crop production cost estimates and then factoring in good yields and current prices, results in most producers having a negative net income (rent being factored into this equation). The 2026 crop profitability forecast also looks similar.

Your partner in challenging times 

While we are familiar with these cycles, it does not make it easier to navigate. We understand the current challenging environment, and our team, along with our cooperative board of directors, continues to look for ways to be more efficient with our resources and services.  Maintaining competitive prices and good service remains at the core of our focus. When we do this well, you win. Innovative Ag Services has a great track record of allocating and returning equity.

In this environment, allocating and returning equity is meaningful. This financial success also puts us in a position to maintain good people and assets. 

Growth and Local Improvement

Our team and cooperative board also look for growth opportunities. This typically involves getting assets and capital spend in the right places. One opportunity that is being explored is an expansion of our ethanol plant at Steamboat Rock. Finding additional demand for local corn is beneficial to our members. Helping members be part of the value-added margin is also meaningful. It is not usual for processing margins to be strong when grain prices are depressed.  We will keep you updated as we evaluate this opportunity.

Finding ways to grow and improve also includes working with other cooperatives where we can partner together. Reducing costs or capital expenditures is a significant concern in the current environment. Identifying ways to better utilize assets and personnel in an area is crucial.  We continue to see asset cost and people cost continue to increase, finding ways to work together just makes sense.

Thank You

Thank you for your business and partnership with Innovative Ag Services. We are deeply aware of the current challenges and strive to find ways to put you in a stronger position. Being efficient and effective with our resources is critical.  This includes working and partnering with others when it benefits members. When we do this well, returns are shared with you. In this environment, this is powerful.

Thanks again for the relationship we have with you.

Good days are ahead.