U.S. Farmers Overwhelmed by Record-Breaking Harvests
The American agricultural landscape is witnessing a rare phenomenon – two of the largest corn and soybean crops in history are being harvested at an unprecedented pace, pushing farmers to their limits.
A Perfect Storm of Challenges
Farmers are grappling with a multitude of issues: grain prices have plummeted to near four-year lows, global export sales are fiercely competitive, and farm incomes have dropped 23% from their record high just two years ago. Many Midwestern farmers still have last year’s grain in storage, as they refused to sell due to low prices.
Rapid Harvesting Exacerbates Storage Issues
Dry weather has accelerated this year’s harvests, forcing grain handlers to store corn outside, rather than in storage bins. “It has been fast and furious,” says Brent Johnson, a corn and soybean farmer in Illinois. As of October 13, 47% of the country’s second-largest corn crop had been harvested, surpassing the five-year average of 39%.
Soybean Harvest Winds Down, Corn Takes Center Stage
With the soybean harvest nearly complete, farmers are shifting their focus to corn, which yields more than three times as much grain per acre. However, the rapid harvesting has led to long lines of trucks waiting to dump their loads at Midwest elevators. In some areas, corn is being stored on the ground due to lack of storage capacity.
Storage Infrastructure Struggles to Keep Up
“We are harvesting a crop too fast for our storage infrastructure,” says Chad Henderson, founder of Prime Agricultural Consultants. This has forced farmers to consider selling some crops for less than it cost to produce them. However, corn futures prices suggest holding the grain for a few months may be a better option.
A Delicate Balancing Act
Farmers must navigate a delicate balancing act – weighing the risks of storing their harvest against the potential benefits of waiting for better prices. “My marketing plan is to keep my head down and wait for an opportunity to come along, which is a very poor plan,” admits Chris Gibbs, a corn and soybean farmer in Ohio.
Leave a Reply