Iowa Ag Secretary Says Farm Economy is Strong, with Some Uncertainty Remaining

(Radio Iowa) State Agriculture Secretary, Mike Naig, says the drought continues to be an issue as the state’s crops head into the final stages before harvest.

“There’s a lot of things that can happen here, as we get through the end of August and into fall that can still make or break that crop,” he says. “But really, it’s about how can we catch a rain or two and try to finish things off.” Naig sums up the outlook right now among farmers.

“I think things are very strong in the ag economy, with the caveat being that uncertainty ahead,” Naig says.  Naig says farmers are used to dealing with the uncertainty, and this year has some of that as well.

“Commodity prices have been strong. We expect pretty good yields across the state that bodes well for the farm economy. But there’s one caveat. And that, of course, is the cost of everything and the uncertainty around that,” according to Naig. “And so, you know, input costs, the cost of fertilizer, the cost of fuel, the impact of inflation, and continued supply chain disruptions.” He says farmers can’t do anything about the rain — but can take some actions on the other factors.

“This double whammy, if you will of supply chain disruption, can I get what I need when I need it? And then too what is the price that I’m going to have to pay,” he says. “And that applies to equipment, fertilizer, fuel, all of the above. So those are the things farmers are trying to manage through their risk. You know, and we’ve got some tools to do that.” Naig says every family in the state is facing some of the same challenges with supply chain issues and inflation. Naig spoke with Radio Iowa at the Iowa State Fair.