Last year’s harvest was a welcome surprise for corn and soybean farmer April Hemmes — she pulled in a record crop, despite drought across her home state of Iowa. But this year, the lack of rain may be catching up with Hemmes’ plants, as nearly 83% of the state experiences drought conditions. 

In the face of possible profit losses, Hemmes stays the course. 

“That’s farming, buddy!” she said. “That’s our everyday life — but we do have crop insurance.” 

“Marketplace” host Kai Ryssdal spoke with Hemmes about how things are looking on the farm. The following is an edited transcript of their conversation. 

Kai Ryssdal: So look, how are things down on the farm? 

April Hemmes: Hot and dry. I mean, that’s all there is to it. 

Ryssdal: That’s not good if you’re trying to grow things, right? 

Hemmes: No. I was watching the news the other day, and the last time Iowa was not in a drought was May 2020. 

Ryssdal: Really? 

Hemmes: Yes. I couldn’t believe it! And I mean, our soils can hold moisture. They’re really good, thick black dirt with a lot of organic matter. But that’s three years of hot and dry. And that’s a long time, but my beans and corn are looking okay for now. They’re holding their own, but I’m not going to have an average crop by any means. 

Ryssdal: Wow. Okay, so two things. Number one, define “looking okay.” For the layperson, what does that mean? 

Hemmes: It means they’re green. They’re putting pods on for soybeans, corn is growing at year, and it’s pollinated. The most important part is getting rain during pollination, when the pollen falls from the tassel down to those little hairs, they all go to a corn kernel. And I did get a good rain then, so we’re kind of getting spoon-fed rain as we go. So that’s what I mean by “looking okay.” 

Ryssdal: All right, but if you’re not gonna have an average crop — and you and I have talked about this before — you borrow money up front to get the seed and the fertilizer, so if you’re not gonna get an average crop, your cash return will be lower, and thus, your loan balance will not work out well for you. 

Hemmes: Well, yeah. That’s farming, buddy! That’s our everyday life — but we do have crop insurance. The kind I get is a revenue assurance. I am assured revenue so I can pay the bank back, period end of story. And any bank that lends that much money wants you to get back. 

Ryssdal: Yes. What about prices? When you take it to market — or when you’re going to take it to market — are you selling futures? 

Hemmes: Well, a lot of people do that. I forward cash grain, or forward contract. Right now, I could sell delivery in March and set my cash price, or set the basis. A lot of people do options to set that bottom. But I’m telling you, Kai, I need some kind of collar because of the whiplash I’ve been getting from these markets — they’re up one day 50, down 40 the next, and everything adds to it. 

Ryssdal: So this is, again, the laypersons question: why do you check prices all the time? I mean, you could just grow and keep your head down, and then at the end of the day, you sell. 

Hemmes: Well, no. I check prices. If I’m comfortable selling and I know I’m making a profit, I don’t have a problem selling. It’s just that when it gets below my cost of production — and it was looking like corn was going that way, and then it came back up! So, it’s been a quite a ride this year. 

Ryssdal: Last time we talked, or maybe the time before that, we were talking about cost of inputs and inflation. Has that stabilized for you, or are you still dealing with it? 

Hemmes: No, we’re still dealing with getting parts. That’s not as bad as it was, but the price is still way up there. But, for instance, Roundup or glyphosate, some places aren’t even taking it back. If you had leftovers, they’re not gonna take it back because the price has come down so far, and I might have bought it really high. They don’t want to refund me that high price. So, the prices on chemicals are coming down, but it’s still the game we play. 

Ryssdal: We’ve talked before about how involved you are internationally with being, for lack of a better word, an Iowa agriculture ambassador.  Let me ask you how you’re looking at the Russia thing, and backing out of grain agreements, and all of those things that reach right down to small town Iowa. 

Hemmes: Yeah, I tell you what, it’s crazy. And that’s part of the whiplash in the markets. I literally just got back from Turkey yesterday, where I was watching those ships come down from the Black Sea just knowing that miles down the road, there’s bombs going up. It really adds to the drastic swings in the market.