Tuesday, June 14, 2011

It is no secret that Ohio’s economy has been struggling in recent years and the wet weather this spring will not help the situation. Unfortunately, the spring weather was so bad that Ohio’s agriculture (and economy) could be paying a hefty price for months to come.

In March, April, and May, Ohio received half of its normal annual precipitation. In May, rainfall totals exceeded 180% of normal for the month. The wet May followed the wettest April since Ohio has been keeping records. Ohio got 215% of normal rainfall for April. In addition, March had 150% of the normal rainfall and February got 205% of the normal precipitation, according to the National Weather Service.

James Ramey, the director of the Ohio Field Office for the National Agricultural Statistics Service, said the numbers regarding the corn planting progress were a clear reflection of the wet spring. By late May, there was little corn in the ground.

“In the history of the Ohio progress report, corn planting has never been this far behind. Our records go back to about 1960,” Ramey said. “Back in 1960, of course, the cultural practices were lot different than they are now and corn planting was typically a lot later than it is now. We are even behind those dates.”

As rains continued through late May, Mother Nature appeared to have Ohio’s farmers on the ropes, though it just took some sunshine and warm weather to show how much fight was left in waterlogged Ohio agriculture. Just days after rain clouds darkened hopes of a successful planting season planters were rolling, dust was flying and Ohio planted a corn crop.

But even after a great week of progress, as of Sunday June 5 only 58% of Ohio’s corn crop was planted, which was 39% behind last year and 41% behind the five-year average. At 26% planted, soybean planting was 51% behind last year and 62% behind the five-year average.

The delayed planting, especially for corn, sets up the potential for substantial yield decreases. By the end of May, corn yield losses can be as high as 2 bushels per acre per day of delayed planting. So, as a result of the late planting season, Ohio farmers stand to lose nearly $1 billion in income, according to Barry Ward, production business management leader with Ohio State University Extension. Ohio’s corn crop could lose $720 million and soybeans could lose $260 million in gross income at the farm gate.

However, Ward says his estimates are just ballpark figures based on certain assumptions made at "a snapshot in time" for only corn and soybeans. He expects that the losses could be much higher for agriculture as a whole.

"It's a very incomplete picture," Ward said. "There are certainly other losses being experienced in the agricultural sector, including substantial losses in fruit and vegetable production, and in the greenhouse and bedding plant industry. Quantity and quality losses in winter wheat might be expected due to disease. And, pasture and hay are also suffering losses in both quantity and quality. Poorer feed means less feed efficiency, and that will translate into losses in livestock, as well."

In addition, the estimate does not include multiplier effects in the economy.

"Less income means that farmers have fewer dollars to spend on inputs and capital expenses, such as equipment and buildings," Ward said. "But it also means less disposable income to make purchases that would have helped spur the local economy -- they might hold off on buying a car or making other purchases."

The summer weather could further increase the huge financial losses as hot, dry conditions in July and August could reduce yield potential for corn and soybeans.

"The weather from now until harvest will determine the impact on yield and on income," Ward said.

Other factors that could change the outlook include how many farmers decide to take prevented planting crop insurance, and how many corn growers switch to soybeans. Ward also points out that this initial estimate "is a very conservative number."

We will unfortunately be feeling the effects of delayed planting for a while, but only time and the summer weather will reveal the full economic price tag of the soggy spring of 2011.


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