The word ‘it’ in the verse refers to the earth.
Germination is a process of creation. Through it, Allah (swt) creates the plant from the seed. This process contains signs and secrets. The seed is made up of two halves. When it is put in water, its size will increase and split into two. Then, a root will emerge and grow towards the bottom to form the roots and sprouts, and grow towards the top to form the stem or trunk. All the while, the seed continues to be the source of nutrition for these two parts until the root grows long enough to be able to absorb its nutrients from the elements in the soil. Then the two halves of the seed will turn into the first two leaves on the stem. Every part of the germination process contains Allah’s (swt) Divine Wisdom, ability, Mercy, Knowledge and Arrangement.
So, when Allah says: ‘grain’, it shows the importance of the grain. This is because, it symbolizes the main and very important source of nutrition for the human being, as it is the structure of his food.