by Clark Poppert, NAICC President
This year has become a nightmare for some U.S. farmers while others have enjoyed the reprieve from drought. The past three years have featured higher than normal commodity prices, but much of that price has been offset by record high input prices. Inflation took its toll as did supply issues and weather phenomena.
In 2022, the High Plains were the epicenter of the drought. Nonirrigated corn in areas that usually receive less than 19" of rain per year annually received far less than that, and corn did not reach the appropriate growth stages before dying. In many cases, cutting for silage was not an option because of high nitrate concerns in the crop. Many of these areas have received normal to above normal rains so far in 2023 and have been lowered to abnormally dry or the moderate stage of drought.
Kansas continues to suffer from heavy drought conditions that have affected crops for at least two years. This year specifically has seen the drought area move east to include the majority of the Corn Belt. At the time I am writing this article, the Midwest or eastern Corn Belt has gone from 80% of the area being normal to 85% showing some level of dryness to drought. The High Plains region or western Corn Belt has regressed from 80% in an area of abnormal dryness to drought all the way back to 40% in that category. Kansas and Nebraska remain the most affected.
Eric Richardson, a row crop farmer and cattle rancher, owns a feedlot close to Lake City, Iowa. He has been debating what to do with the corn stored in the elevator. He would have liked to have priced it earlier but saw the dry conditions spreading from the High Plains into the Midwest.
“I wanted to market the corn before the prices dropped, but I am considering bringing it home from the elevator to feed cattle this winter,” he said. “It all depends on the weather this year. As of now, we have about 4" of moist soil on top, but it gets very dry below that.”
If there is not much of a crop this year, then he will have to feed what he has stored in town at the elevator and then face the problem of what do you do with next year’s calves.
The past two years have brought about immense supply chain issues that range from chemicals to equipment. The issues seem to be sorting themselves out, but delays and parts are still issues. Chemicals were not immune to the shortages as we did not have the product inventory that we have had in the past. Prices of some chemicals increased dramatically. However, for some others, prices only increased a small percent.
Inflation has leveled off to some extent, but prices will probably never return to the ones to which we are accustomed. Demand has dropped, commodity prices have dropped, weather has turned dry, and input prices have increased. This is mostly due to fertilizer costs.
The year has been a wild ride so far and looks as if that will continue into 2024. Not too many people want to depend on insurance or any form of government help, but we must have a safety net. Hang on folks because it could get bumpy.
