The drought in significant parts of the Corn Belt during the summer of 2012 has raised familiar questions about deferability of crop insurance proceeds. The issue is especially important for those farmers that have a history of reporting crop income in the year after the year of harvest. The Internal Revenue Code allows deferability of crop insurance proceeds if certain requirements are satisfied....More
The USDA recently added 23 counties in Wisconsin to its list of primary natural disaster areas due to the worsening drought. Farm Industry News contributor Jeff Ryan took these photos near St. Lucas and Fort Atkinson, Iowa, where the drought continues to plague fields throughout the area. Meanwhile, parts of Iowa received much-needed rain.
Water shortages are critical at any time of plant development but especially at the reproductive stage. They will lead to poorer crop performance and less yield potential, says Mark Rosenberg, SDSU Extension Weeds Field Specialist.
Rosenberg explains that each crop has a different period of growth where adequate moisture will be necessary to reproduce. Corn to a degree can be fairly drought tolerant. However, the critical time for moisture to be present is during the period 2 weeks before and after tasseling....More
Agriculture Secretary Tom Vilsack today designated 76 additional counties in six states as primary natural disaster areas due to damage and losses caused by drought and excessive heat. During the 2012 crop year, the USDA has designated 1,369 counties across 31 states as disaster areas—1,234 due to drought—making all qualified farm operators in the areas eligible for low-interest emergency loans. The additional counties designated today are in the states of Indiana, Illinois, Kansas, Michigan, Nebraska and Wisconsin....More
Growers may want to hedge all or a portion of their yield guarantees to take advantage of high prices that currently exist for harvest-time futures contracts. While prices could move higher, current prices would allow many farms to lock in profits, a situation that may exist later in the year....More
The U.S. soybean crop remains a big question as the corn crop deteriorates. Rains may still hold some of the soybean crop in drought areas. Soybean prices continue to climb and may peak in September....More
Agriculture Secretary Tom Vilsack today announced new flexibility and assistance in the USDA’s major conservation programs to get much-needed help to livestock producers as the most widespread drought in seven decades intensifies in the United States. Vilsack also announced plans to encourage crop insurance companies to provide a short grace period for farmers on unpaid insurance premiums, as some farming families can be expected to struggle to make ends meet at the close of the crop year....More
The Springfield Regional Office of the Risk Management Agency (RMA) released a fact sheet entitled "Crop Insurance During a Drought." This publication covers the following topics: notification of drought loss, appraisal of drought loss, and frequently asked questions. Copies of the publication are available here. Other RMA publications/fact sheets are available here. For your convenience, the "Crop Insurance During a Drought" fact sheet is reproduced below....More
Headlines throughout the media are comparing the intensifying drought we are experiencing to the drought of 1988. Considered the worst drought year in the last century, farmers experienced a national corn yield reduction of 30%. Conditions in southern Minnesota have many wondering if we’ll incur the same kind of losses this year....More
Drought that is spreading across the country is increasing feed prices and quickly spelling financial disaster for livestock producers, Purdue Extension agricultural economist Chris Hurt says.
While crop producers face serious economic losses from reduced or nonexistent yields, the lack of corn, soybean and hay crops could make the fallout even worse for milk, beef, pork, mutton, chicken, egg, turkey and duck producers....More
With no relief from the ongoing drought in sight, crop ratings continue to drop. University of Illinois crop sciences professor Emerson Nafziger said that only 11 and 17% of Illinois corn and soybean crops, respectively, were rated as good or excellent on July 15.
Corn crop prospects continue to worsen with loss of leaf area and poor or failed pollination in dry areas. As leaf color and area continue to decline, so does yield potential.
Agriculture Secretary Tom Vilsack today designated 39 additional counties in eight states as primary natural disaster areas due to damage and losses caused by drought and excessive heat. During the 2012 crop year, the USDA has designated 1,297 counties across 29 states as disaster areas, making all qualified farm operators in the areas eligible for low-interest emergency loans. The additional counties designated today are in the states of Arkansas, Georgia, Indiana, Mississippi, New Mexico, Tennessee, Utah and Wyoming. The U.S....More
The good news is: The U.S. corn crop and drought in Midwest are no worse than is being reported by the media. Television and print media news reports seem to have found the worst fields to broadcast from. I suspect the fields in the news have other yield challenges besides drought, like compacted or sandy soils, late planting, etc. I saw a news report where the (Iowa?) farmer was disking up standing corn, which made no sense. If the corn crop was not worth harvesting, at least let it stand and break the wind to a prevent dust storm. ...More
As serious drought conditions continue to creep across nearly two-thirds of the lower 48 states, USDA officials are fanning out to rural communities across the country to show support to farmers and ranchers affected by a string of extreme weather in 2012. Today, under secretary for farm and foreign agricultural services Michael Scuse tours Indiana, a state now experiencing increasing levels of drought....More
Despite the most acres of corn planted since the 1930s and high expectations this spring by the USDA for this year's crop, the 2012 yield is likely to be even lower than current official government forecasts.
In June, the USDA was projecting a record 166 bu. of corn per acre to be harvested this fall.
That projected yield has been pushed down to 146 bu. per acre as of mid-July.
AccuWeather.com agricultural meteorologists expect this figure is likely to go lower and are projecting the yield to be around 138 bu. per acre....More
The 2012 drought has many growers throughout the Midwest very concerned about its effects on corn and soybean crops. Farm Industry News brings you a compilation of our most recent drought coverage. Stay tuned as we continue to bring you more drought stories and resources throughout the coming weeks.
University of Illinois Extension announced that the Illinois Drought Resources website has just gone live. The site has been created to ensure that information related to the current dry weather in Illinois is organized, easily found, and available.
The site can be accessed at http://web.extension.illinois.edu/drought/.
It contains the most recent information about the impact of the drought on crops, livestock, and home gardens, as well as discussions of financial considerations....More
August soybeans finished up $0.53 1/2 at $15.83, $0.02 1/2 off the high and $0.38 1/2 up from the low. November soybeans closed up $0.51 3/4 at $15.26 1/2. This was $0.33 1/2 up from the low and $0.02 1/2 off the high.
November soybeans gapped higher at the opening bell and seemed to gain in strength through the day to finally close near the highs of the session. The July contract gained on the August and November contracts after no deliveries were made. Soybean meal and oil both traded sharply higher into the closing bell....More
September corn finished up $0.35 1/2 at $7.09 1/2, $0.04 1/2 off the high and $0.22 1/2 up from the low. December corn closed up $0.34 at $7.08 1/2. This was $0.23 up from the low and $0.04 1/2 off the high. December corn gapped higher on the open and surged past $7.00 early in the session. After a brief mid-day dip on profit taking, corn surged into the closing bell to finish the day near its highs....More
Crops have been adversely affected by hot, dry weather throughout the spring and summer months in the Midwest. Farm Industry News brings you a compilation of our weather coverage from recent months to provide an overview of how this weather has affected the 2012 corn and soybean crop so far.
Article: Indiana drought worst on crop conditions since 1988...More
Indiana crop conditions continue to deteriorate daily as the drought worsens to a level not seen since 1988, Purdue Extension corn specialist Bob Nielsen said today.
The state’s corn crop has fallen off such that only 19% was rated good to excellent by the U.S. Department of Agriculture, Nielsen said during a news conference at the Indiana State Fairgrounds. As of July 1, more than 90% of the crop acres were rated as short to very short for soil moisture....More
July 2012 corn futures are currently trading about $1.00 below the peak reached in August 2011, but $1.40 above the low reached a month ago. December 2012 futures are trading $1.50 above the low of June 15, 2012, and within $0.15 of the high reached on August 31, 2011....More