Waiting on the rain

Local farmers are eligible for disaster relief thanks to a drought declaration from the USDA last month, but many are taking a “wait and see” approach as harvest season draws near.

Jasper County is not one of the primary counties identified in the drought designation, but it qualifies due to its proximity to the primary counties of Clarke, Decatur, Jefferson, Lucas, Madison, Marion, Union, Wapello, Warren and Wayne counties. The designation means that farmers in the affected areas qualify for emergency loans and other assistance programs from the federal government.

Will Cannon, who farms near Newton said this year feels reminiscent of 2012, when local farmers faced similar drought condition. While he’s certain that yields won’t be as high as last year’s bumper crop, Cannon said it’s hard to tell just how the drought has affected his operation until harvesting begins. Where the soil is the best, Cannon said he expected yields to be comparable, but in areas with lower quality soil farmers are expecting dramatically reduced yields.

“For the heat we’ve had and the lack of rain we’ve had I think the yields will be pretty phenomenal in spite of those obstacles, but they’re going to be down dramatically from what they’ve been the last couple of years,” Cannon said.

Wade Boehm couldn’t agree more. On his farm north of Colfax, Boehm said in areas where the soil is poor it’s clear that the drought has taken root. Pointing to a stand of corn Boehm plucked one of the ears and demonstrated how it’s noticeably smaller than average. Sandy soil in that area means the water dissipates quickly, and it’s these areas that are hit hardest by the drought.

“The marginal areas are going to be hit the hardest, and it just seemed like we missed a lot of rains this year,” Boehm said. “June and July were really dry months.”

While both farmers agreed the drought designation will offer some relief, they are also disappointed with the recent USDA harvest forecast. Based on the USDA projections, grain prices are still low, with corn recently trading at $3.45 a bushel. The low prices, in conjunction with lower yields has farmers feeling the pinch.

“A lot of guys don’t agree with the USDA numbers, they’re looking at their fields and thinking the numbers should be higher, there’s a lot of anxiety and a lot of unknowns right now,” Cannon said.

Boehm thinks there’s still time for a price rally, but he said he doesn’t expect it to happen until the harvest season kicks into gear, because that’s the first opportunity that farmers will have a chance to get some solid numbers.

“I don’t think there’s going to be as many bushels coming out of Jasper County as people are used to,” Boehm said. “I personally feel at the end of the fall that there’s not going to be what’s projected.”

Farmers can take advantage of other programs with the drought designation, which includes cutting CRP fields for hay, which will provide relief for many livestock farmers in the county whose fields have gone dormant due to lack of rain.

Cannon said it’s too early to tell if he’ll take advantage of the emergency loans or not.

“I’m waiting to see what the size of the crop is, and what the markets do, once I know what my production is for the year, if it’s low enough that I’m going to need it, I’m going to look at all my options,” Cannon said.

In spite of this year’s drought both men remain optimistic, Boehm said he’s expecting a price rally once commodities traders realize how widespread the effects of the drought have been across the country. As the growing season winds down, there’s nothing he can now except wait for harvest to begin.

“You can only plan and prepare so much, you just need to get out there when you can,” Boehm said.

Farmers seeking natural disaster assistance are encouraged to contact their local USDA service centers for further information on eligibility requirements and application procedures. Additional information is available online at http://disaster.fsa.usda.gov.

Contact David Dolmage at 641-792-3121 ext. 6532 or ddolmage@newtondailynews.com