The USDA Cannot Extend Planting Dates — Money before Food
This week’s USDA Crop Progress report reveals that just 67% of America’s projected corn acreage was planted as of June 02 due to an historically cold and wet spring, with soybean acreage faring even worse, with only 39% in.
The Agricultural Retailers Association (ARA) wants Agriculture Secretary Sonny Perdue to extend the late-planting season for crop insurance to avoid “unintended consequences”. However the USDA is remaining steadfast with its response, stating that the department “cannot make changes to the contracts between farmers and crop-insurance companies“.
Final planting dates for corn were May 31 in Iowa, most of Wisconsin and Minnesota; and June 5 for Illinois, Indiana, Ohio and Michigan. June 10 is the final planting date for soybeans in most of North and South Dakota, Nebraska, Minnesota and the majority of Wisconsin. The date extends to June 15 for soybeans in Iowa, northern Illinois, southern Wisconsin and most of Michigan. And June 20 is the final planting date for soybeans in Missouri, southern Illinois, Indiana and Ohio.
DTN Lead Analyst Todd Hultman holds serious yield concerns for any late crops: “In 1995 [solar minimum of cycle 22], when the corn crop was planted late, the yield came in at 113.5 bpa, roughly 13% below trend. It is understandable that corn planted late, or in less than ideal circumstances, would suffer yield loss and it wouldn’t be surprising to see that in 2019″.
And while it’s bad enough news that late planting results in a reduced yield, the way ag insurance is setup means it’ll actually pay some farmers not to plant altogether now, resulting in —obviously— a zero yield.
Writing to Ag Secretary Sonny Perdue on Tuesday, the ARA stated any disaster aid that encourages farmers not to plant “will have a significant detrimental impact on agricultural retailers and other businesses who serve farmers.”
In the letter, ARA again asked Perdue to look at extending the growing season and the end of the late-planting season. “We believe the American farmer wants nothing more than to be able to put crops in the ground and produce a plentiful harvest, and this action would hopefully assist to that decision.”
But again, Perdue remained steadfast with his response, and didn’t budge.
And while it is possible to hold sympathies for both side of the debate, the end result is effectively Money before Food.
Grow your own.
Grand Solar Minimum + Pole Shift
I wonder:
Did the farmers plant those crops anyway deciding to take
the risk or did they switch to a later planting date crop with
prehaps a lower market price but a better bet to get in
a full yield? A look at the futures market could be interesting
and maybe profitable.