Financial crisis impacts farms - KWWL - Eastern Iowa Breaking News, Weather, Closings

Financial crisis impacts farms

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Buckingham (KWWL) -- Wall Street's crisis is having a trickle down effect on Iowa's farms.

Crop prices are mirroring Wall Street's downturn.

The price of oats on Chicago's market has fallen from $4.80 in July to $3.21 October 1.

It's the same story for soybeans which topped $16 back in July but fell to about $10.50 now.

The price of corn has gone from nearly $8 per bushel in July to $4.84 per bushel now, dropping sharply over the past week much like Wall Street.

While many of us worry over 401k's, stock prices, and interest rates, farmers are watching the commodities markets closely.

Timing may help.

Most farmers don't sell their grain during harvest season so they're hoping the markets bounce back before they're ready to make a deal.

At the Buckingham Co-Op in Tama County, it's all about grain.

The elevator here only deals with corn and soybeans.

Any adjustments to the market are felt here.

"Not a lot of farmers selling lately. Either they've made sales early and they'll have enough money to pay their bills or they'll have to defer some income til January so I don't expect a lot of new sales going forward," says Bob Reynolds of the Buckingham Co-Op.

While the harvest is about two weeks behind in eastern Iowa, farmers are riding high over two straight years of high prices.

While those prices have dropped this year, farmers are hoping to tough it out.

"We missed out on some $7 sales and $15 bean sales so farmers always optimistic we'll get back to those levels so time will tell if we can do that or not," says Reynolds.

Meantime, while farmers continue their work this fall, they'll keep an eye on wall street hoping for the best.

"Monday's news of lack of a bailout from Congress affected the markets 30 cents down on corn, 70 cents down on beans so news affects commodity prices and it affects farmers attitudes around here," says Reynolds.

Right now, those attitudes aren't the greatest.

This year's weather has been pretty wet delaying planting and the harvest.

Farmers hope they'll be able to get their harvest done before the first frost.

Online Reporter:  Bob Waters

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