Early Blizzard Wallops Vulnerable Crops -- Update
October 14 2019 - 12:28PM
Dow Jones News
By Jacob Bunge and Kirk Maltais
Farmers who delayed planting in waterlogged fields this spring
face a new threat as they race to harvest their crops: snow.
Heavy snowfall and high winds over the past several days
buffeted northern Farm Belt states where many farmers faced
historic planting delays last spring. The early blizzard bookended
a trying year for U.S. farmers. Crop prices generally remain under
pressure because of high supplies and slackened demand as a result
of the U.S.-China trade war. And many crops now threatened by a
freeze are immature because they were planted so late.
Roger Rix, who farms near Groton, S.D., was hustling with his
sons last Wednesday to harvest soybeans before the storm hit. He
suspected two-thirds of their soybean acres would still be in the
field when the storm was forecast to arrive this week.
"We know the snow's going to be a disaster," Mr. Rix said.
Over the weekend, parts of the Northern Plains received between
1 and 2 feet of snow as well as high winds, according to data from
the National Oceanic and Atmospheric Administration. Temperatures
remain freezing Monday and are expected to warm later this week,
said weather analysis firm DTN.
The cold weather is a big threat to vulnerable crops. Only 22%
of corn in North Dakota was mature as of Oct. 7, and 36% in South
Dakota. In the 18 biggest corn-producing states, 58% of this year's
crop was mature, versus an average of 85% by that date over the
previous five years, according to the USDA.
Farmers in the Dakotas say the snow could delay their harvest by
as much as three weeks. That will leave them scrambling to beat the
next storm as colder weather advances. Some crops could go
unharvested until next spring.
David Iverson, a director with the United Soybean Board and a
fourth-generation corn and soybean farmer in Astoria, S.D., said he
hadn't started harvesting the 1,000 acres of soybeans that he
planted in early June, three weeks later than usual.
"The push is beating the winter weather setting in," he
said.
A bad storm, combined with tightening U.S. corn and soybean
supplies, could lift fortunes for farmers elsewhere who are able to
get their crops out of the ground. Sanford C. Bernstein analysts
projected that every 1% decline in corn yield driven by harsh
weather could lift corn prices by 5 cents a bushel. For farmers
with crops to sell, higher prices translate to increased spending
on seeds, fertilizer and machinery that could benefit suppliers
such as Bayer AG, Corteva Inc., Mosaic Co. and Nutrien Ltd.
Net U.S. farm income this year is forecast to reach $88 billion,
up 5% from last year, the USDA estimated in August. Most of that
increase is because of a big boost in federal support. The Trump
administration's payments to offset the impact of the trade war
with China will boost government payments to farmers to $19.5
billion this year, USDA said, the highest level since 2005.
For Chris Brossart, a farmer of corn, wheat and soybeans in
Rugby, N.D., planting on time wasn't enough to beat the snowstorm.
Of the 4,000 acres he and his wife farm, he has 2,000 acres of
soybeans left to harvest and 500 acres of corn left to harvest.
"A lot of these plants are hanging on, trying to fill out their
yield," said Mr. Brossart.
In Onida, S.D., Oahe Grain General Manager Tim Luken said he
worried about the financial fallout on the local economy. Smaller
crops mean less income for farmers and less business for local
agricultural shippers and suppliers. That trickles out to grocers
and other businesses, he said.
"This year it's been a war with Mother Nature, and I've come to
the conclusion we're not gonna win," Mr. Luken said.
Write to Jacob Bunge at jacob.bunge@wsj.com and Kirk Maltais at
Kirk.Maltais@wsj.com
(END) Dow Jones Newswires
October 14, 2019 12:13 ET (16:13 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.