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July 9, 2012
Drought Leaves Farmers Down and Out
For more information on Newsline, contact: Johnna Miller, Director of Media Development, American Farm Bureau Federation johnnam@fb.org
With scorching hot temperatures and lack of precipitation, corn farmers in the Midwest are feeling the effects of the worst drought since 1988. American Farm Bureau Crop Economist Todd Davis shares how the weather forecast is impacting this year’s corn yield. AFBF’s Miranda McDaniel reports.
| McDaniel: | The Agriculture Department forecasts a record breaking corn crop this year. But, with deteriorating growing conditions in the Corn Belt, American Farm Bureau Crop Economist Todd Davis says the outcome will be lower than the expectation. |
| Davis: | We do know that the corn yields are going to be much lower than what USDA’s currently projecting. Currently, USDA’s projecting 166 bushels an acre, which would have been a record. Given the large area that’s affected by drought and heat, I’ve seen some estimates at around 150 bushels an acre. |
| McDaniel: | The shortage of rain and hotter than average temperatures are affecting the crop during one of the most crucial times --the pollination phase. |
| Davis: | This is where the plants number of seeds that it will produce is getting determined. The hot, dry weather stresses the plant. It reduces the potential to produce a large amount of seeds, and so that’s what reduces the yield. And as the plant gets stressed, the ability to fully develop a crop is going to be reduced. |
| McDaniel: | The lack of corn supply, used mostly for feed and fuel, may affect consumer’s wallets but not in the foreseeable future. |
| Davis: | The effect of a drought and the lower supply of feed won’t be felt directly. It takes a while for that to ripple though the economy. What might happen will be higher feed costs might reduce the amount of pork and beef and poultry that’s produced and then that will increase the price of meat and poultry through reduced supply. |
| McDaniel: | Miranda McDaniel, Washington. |
| McDaniel: | We have two extra actualities with AFBF Crop Economist Todd Davis. In the first extra actuality he explains how farmers will feel the brunt of the bad weather. The cut runs 19 seconds, in 3-2-1. |
| Davis: | Well this does have a direct financial impact, this is their livelihood. They have one chance per year to produce a crop and have it wither and die in front of their eyes has a direct financial impact. They do invest a lot of money in producing a crop before they have a chance to harvest it, and so they’re out their cost of production and their paychecks are going to be reduced. |
| McDaniel: | In the second extra actuality Davis says the drought provides a great example of why crop insurance and other programs utilized by farmers are a necessity. The cut runs 24 seconds, in 3-2-1. |
| Davis: | Right now Congress is working on a new farm bill which provides funding for the major risk management tools available to farmers, which would be primarily crop insurance. And a year like this really illustrates the importance in having these programs to provide risk management opportunities to farmers because farmers are able to manage a lot of things in their farm business but they do not have control over the weather, and that’s what directly affects their profitability. |
| McDaniel: | Newsline is updated Mondays and Thursdays by 5pm eastern time. Thank you for listening. |