TERRE HAUTE —
As the record setting drought of 2012 wreaks havoc on crops, how it financially hits individual farmers will depend on crop prices and insurance, said Chris Hurt, professor of agricultural economics at Purdue University.
Hurt forecasts that a report to be released today, from the National Agricultural Statistics Service of the U.S. Department of Agriculture, will show corn and soybean production nationwide is down 25 percent. Indiana’s production will be down 30 to 35 percent, Hurt forecasted Thursday at the Wabash Valley Fairgrounds before about 120 people attending a Purdue program on impacts of this year’s drought.
Rainfall has been vastly different across the state, with northern Indiana getting a very wet July, while areas like Vigo County have had little rainfall. Thus some farmers will have a near standard crop while others may have half of their normal yield
“This will not be one of the worst financial years for crop farmers overall in the United States,” Hurt said. “The range within individual farmers will go from all the way from a horrible, horrible year financially to some farmers that will say they will be better off with the drought than without it,” Hurt said.
The two economic compensations to restore farm income across the nation are crop prices and crop insurance, Hurt said.
Corn prices, up from $5 in May and now at about $8 per bushel, could raise to as much as $9 per bushel before lowering, Hurt said. “The total value of the corn crop has gone up $20 billion across the United States with this drought since May,” Hurt said
As the drought continues, some farmers may have no crops at all, but if they are insured, a farmer could still come out in the black financially, Hurt said. In Indiana, 65 to 75 percent of farmers have some form of crop insurance.
However, those without insurance will be hit hard financially, Hurt added.
As an example, at the start of the year, Purdue officials estimated a 500-acre farm, planted with half corn and half soybeans, with 35 percent sold on a forward contract, would generate an income of about $62,500, based on prices in May.
With the drought, that same farm may produce just 65 percent of its crop. However, with corn at $8 per bushel, the farm, assuming no forward contracts or crop insurance, would generate $14,000. If that same farm, with 65 percent of its crop, had 35 percent sold on a forward contract plus no crop insurance, it puts that farm in the hole at a $62,000 loss, Hurt said.
However, if that same farm, producing 65 percent of its crop, has 75 percent crop insurance and has no forward contracts, the farm income would be about $120,000, Hurt said.
Several farmers attending the program had mixed reactions.
One farmer, who declined to give his name, simply stated, “It will be a really, really bad year.”
Ervin Buse, who works for Hayhurst Farms in Vigo County, said he too thinks “it will be a bad year. Beans might save it but the corn is done for. [Purdue] thinks it will be 35 percent loss for corn, but I think it will be greater than that.
“It is really hard to tell now. A couple more weeks will tell a lot more,” Buse said.
Owen County farmers Ethan Wood and his grandfather, Paul Oberholtzer both said crops “will be bad.”
“In our area, I have seen some areas where it will be 80 percent down. They will not make enough money to even harvest it,” Oberholtzer said. It takes about $365 to produce one acre of corn with fuel costs and other costs, he added.
The two farmers are 100 percent insured, so “we will be [financially] OK,” Wood said.
Eddy Adams, district conservationist for Natural Resource Conservation Service, said the U.S. Department of Agriculture this week released $16 million to $20 million, of which Indiana would receive about $3.5 million, for a cover crop program aimed at helping distressed soils impacted from the drought.
“We discourage disking corn stalks and encourage no tilling and cover crops,” Adams said. The program is a three-year contract, but farmers must apply for the program by Aug. 20, as it is an emergency program.
More information on that program can be found at www.in.nrcs.usda/drought.html
As the drought continues, it has caused a shortage of hay to feed livestock, or priced some hay or other products out of reach. Some farmers are turning to grinding corn stalks or soybean residue as a feed additive.
Farmers must be careful to monitor nitrate levels, which at levels of 4,000 parts per million or higher can kill cattle, said David Redman, Lawrence County Purdue Extension educator.
Reporter Howard Greninger can be reached at (812) 231-4204 or howard.greninger@tribstar.com.
News
Related Photos
-
Tribune-Star/Jim Avelis All ears: About 120 farmers showed up for a drought resources meeting Thursday at the Wabash Valley Fairgrounds. The Purdue Extension office had speakers in several fields talk on helping manage the effects of the current drought.
-
Tribune-Star/Jim Avelis Wilted: A soybean field in northern Vigo County shows the effects of the current drought. Some plants have died completely while other barley survive, for now.
-
Tribune-Star/Jim Avelis Money concerns: Chris Hurt talks with a group of about 120 farmers about the money/financial side of the drought at a drought resources meeting Thursday at the Wabash Valley Fairgrounds.
-
Tribune-Star/Jim Avelis Tell tale signs: Jim Luzar, Purdue University Extension Educator talks about the procedure used to judge the level of nitrates in corn. He was one of several speakers at a drought management seminar Thursday at the Wabash Valley Fairgrounds.
Discussion
Ag expert forecasts corn, soybean production down 25 percent
- News
-
-
Terre Haute Coke & Carbon: Cleaning up a legacy
When heavy equipment starts moving dirt next week at the former Terre Haute Coke and Carbon industrial site, city officials hope a new day will be dawning for a long-neglected part of town.
-
Diversity growing: New census report shows changing face of Indiana
Like the rest of the nation, Indiana is continuing on a trend toward greater diversity as the numbers of Hispanics, blacks, Asians and other minorities are rising at a faster pace than whites.
-
Valley following diversity path of nation, Indiana
Like much of Indiana, the majority white population in the Wabash Valley is on the decline, while minority populations are on the increase.
-
Court lets walkout fines against House Democrats stand
House Democrats who had to pay more than $100,000 in fines after they walked out of the Indiana Statehouse two years ago during a legislative session won’t get the help they sought from the Indiana Supreme Court.
-
Arrest made, victim identified in Rosedale homicide
The victim in a Parke County homicide that occurred last week has been identified as Kathryn A. Bays, 55, of Rosedale.
-
Vermillion industrial park gets award for transition
The Vermillion Rise Mega Park, a former chemical weapons base now an industrial park north of Clinton, has gotten national attention for its rapid transition to civilian from military use.
-
Slight damage from evening storm
Very little damage was reported from a late evening storm that rolled through the Wabash Valley on Tuesday.
-
U.S. 41 lane restrictions
Motorists should expect delays because of lane restrictions on U.S. 41 in Sullivan County next week as a railroad company repairs a rail crossing 1.2 miles north of Shelburn.
-
Back home again: Items from vaudeville stage and Terre Haute native sent to Historical Society
The staff at the Vigo County Historical Museum are excited about the arrival of priceless items used by Terre Haute-native Rose Fehrenbach and her husband, Edward Pierce, to promote their Vaudeville acts in the early 20th century.
-
Husband charged in Archer homicide
Terre Haute Police have found local reports of domestic violence between a Terre Haute man and his wife, whose body was discovered wrapped in a tarp and dumped in an Ohio ditch.
-
National Road panels dedicated
Rewind to the mid-1800s, when the trotting of a horse and buggy on National Road could be heard alongside the voices of people heading west, searching for opportunities.
-
Pence sets agency priorities
Following a directive from Gov. Mike Pence, state agency heads are reorganizing some of their top priorities to better reflect the first-year governor’s “roadmap for Indiana” plan for improving the state’s economy, infrastructure and health.
-
Another I-70 traffic snarl: Three injured in two related crashes
Three people were injured Monday afternoon from a pair of crashes on Interstate 70 that temporarily closed the highway and diverted traffic into Terre Haute.
-
Terre Haute man still hospitalized after scooter/car crash
A Terre Haute man remained hospitalized Monday at Methodist Hospital in Indianapolis after his scooter struck a car early Saturday on Wabash Avenue at 25th Street.
-
Overpass repairs causing Interstate 70 lane restrictions
Repairs to the Frye Road overpass in southeastern Vigo County has caused a restriction to the left lane of Interstate 70 between the 13- and 14-mile markers, about two miles east of the Indiana 46 exit.
-
Indiana woman condemned for killing at 15 is freed
A woman who was sentenced to death at age 16 for taking part in the torture and murder of a 78-year-old Bible studies teacher was released from an Indiana prison Monday after growing to middle age behind bars.
-
Grant will let Vigo Library evaluate map collection
The Vigo County Public Library has received a $2,000 grant to evaluate its historic map collection, a library official announced Monday.
-
Four juveniles caught on elementary school roof; one injured jumping off
Police say a juvenile was lucky to have suffered only a broken leg after jumping from the roof of a Vigo County elementary school – dropping about 30 feet to the ground.
-
Farmersburg man sentenced after guilty plea in rape case
A Farmersburg man has been sentenced to 12 years in prison after pleading guilty to a rape that occurred at his parents’ residence in May 2012.
-
Still no information being released on Rosedale homicide
No new information was being released Monday afternoon concerning a Rosedale homicide.
-
Fathers take time out to spend quality time with children, grandchildren
A big, circular white cloud rose up through the tall atrium as Mike Woods held his 4-year son, Nathan, Sunday at the Terre Haute Children’s Museum.
-
On Friday, hit the park and raise funds for skateboarders
The On-board United Initiative — O.U.I. for short — has scheduled an all-ages fundraising event Friday in honor of national Go Skateboarding Day.
-
STATE OF THE STATEHOUSE: Sentencing law could benefit juveniles
Monica Foster is a longtime public defender who’s been pushing uphill in the legal system for a long time. So, when she says the General Assembly is making progress protecting the rights of the disenfranchised, it’s worth stopping to listen to her.
-
Mastering the art of Gardening
The Wabash Valley Master Gardeners group gathered over the weekend to marvel at each other’s gardens on its annual garden tour. The event was a chance for master gardeners to showcase their labor of love, meanwhile sharing stories about their plants.
-
RESTAURANT INSPECTIONS: June 17, 2013
The Vigo County Health Department inspected the following food establishments May 28-31:
-
Lawn mower fire destroys barn
A lawn mower that caught fire was cited as the cause of a fire that destroyed a single story barn Sunday in the 2000 block of North Chamberlain Street, said Harold Osborn, assistant fire chief of the Lost Creek Township Fire Department.
-
Wabash Valley residents vie for spot on Wheel of Fortune
Ellen Fujawa of Zionsville wants to be on the popular syndicated Wheel of Fortune game show.
-
No ID yet on body found in Rosedale home
Sheriff Mike Eslinger said his department is waiting to obtain an immediate family’s confirmation of a woman found dead in a home in the 2900 block of West Rosehill Lane.
-
Vigo School Corp. eliminating bus transportation for middle school sports teams
The Vigo County School Corp. will no longer provide school bus transportation for middle school athletic events, starting with the 2013-14 school year.
-
B.J. RILEY: Fathers are an inspiring figure
Ever since I can remember, I wanted to be a salesman. In grade school, I was so excited about selling candy bars or candles or whatever the chosen product.
- More News Headlines
-
Tiger on Sergio: 'It's Time to Move On'
RAW: NSA Director Says 50 Plots Foiled
Hoffa Mystery Still Fascinates After 4 Decades
Ex-NFL Star Chad Johnson Out of Jail
Rain Damages Brazil Soccer Stadium
Raw: NASCAR Driver Jason Leffler Dies in Wreck
Raw: Huge Fire Near Yosemite National Park
3 Charged in Ohio With Enslaving Mom, Daughter
Raw: Marines Land Osprey on Japanese Ship
Falling Cable Hurts 10 NASCAR Fans
Raw: 1 Dead in Shooting at Mo. Apartment Complex
Raw: Volcano Erupts Near Mexico City
Pa. Girl Who Took on Donor Rules Gets Lungs
NYC 911 Call Lasts for 8 Hours
Raw: Obama Arrives in Berlin
Robot Action Connected to Human Thought
Obama Seeks G-8 Support on Syria
Prosecutors Push for Smartphone "Kill Switch"
Obama: NSA Secret Data Gathering 'Transparent'
Google Launches Internet-beaming Balloons
Spurs' Popovich has no problem with Spurs' intensity
Inside Kim Kardashian's Premature Labor
Three Charged for Enslaving Mother and Daughter
Paige Butcher Scorches on Hawaii Beach
Video: worst way to load cargo onto a plane
Never-before-seen footage of '08 Times Square bomber
WATCH IT: Lil Wayne tramples American flag
Mariah Carey Looks Beautiful in a Tiny Cut-Out Swimsuit
Out of Control Boat Throws Passengers Overboard
See Lindsay Lohan in Rehab
Sofia Vergara Posts Perky Backside Pic in Thong
Gaga Ditches Her Crazy Couture
Caught on Tape: Teacher Accused of Beating Autistic Child
"Stay Classy" Campaign Aims to Curb Binge Drinking
Sesame Street Tackling Tough Topic Parents in Jail
Miss Utah Fumbles Interview Question
Deranged man claims Newark-bound flight was poisoned
