May 21, 2013

Farmers considering fate of drought-stressed soybeans

Farmers with soybeans dying in the fields and livestock to feed have a difficult choice to make.

Soybeans from a field near St. Joseph planted May 20 have blooms but no pods. Pictures courtesy of Karma Metzgar, University of Missouri Extension.

Many Missouri producers who last year had a hay surplus sold it to counterparts in drought-stricken states. Now those same Missouri farmers are experiencing drought and have to decide whether to give soybeans more time to possibly produce, or cut them for forage.

University of Missouri soybean specialist Bill Wiebold says it’s a tough call because soybeans have a long window of potential because they flower over about 40 days, compared to 6 to 8 days for corn.

“It causes soybean to be a little bit better capable of handling at least short-term stresses, and then all that built-in capacity that soybean has produces lots more flowers than they really need.”

Wiebold says the window is closing, however, and the last round of consecutive 100-degree-plus days might have been too much. “On a soybean plant it goes from ‘it doesn’t look too bad’ to ‘the leaves are dry and the plant is dead’ pretty quickly, and it’s hard to know when to pull the trigger and when to make that decision.”

What’s been applied on those crops?

Soybeans do offer good forage, but University of Missouri forage specialist Rob Kallenbach says farmers have to consider whether they’ve used any applications on that crop before feeding it to livestock. There is a risk that chemical residue could show up in meat or milk from animals that grazed on it.

“There are a number of those herbicides that have restrictions. 30-days, some of them are 60-days, some of them are the whole year, so you can’t the crop for hay or forage if some of these herbicides have been used.”

He says producers need to check labels or talk to suppliers to see what the dangers are.

Wiebold says fertilizers used on corn can also present risks.

“Corn plants will absorb nitrogen fertilizer through the roots and then they kinda store that as nitrate in the stem. When you feed that to an animal, particularly ruminants, that nitrate gets changed into nitrites that binds with the hemoglobin and oxygen can’t be transported around the body and you can kill them.”

Wiebold says he farmers are going to cut soybeans for feed, they should do it before leaves dry out. “Once they dry, they’re very fragile. They’ll break up, and that’s where all the nutrients are … you want to keep them on the plant.”

MU specialists urge patience.

Kallenbach says whatever farmers do with drought-stricken crops, they must make sure insurance assessors have seen them first.

“You need to talk with your adjuster and your insurance company prior to harvesting that crop for silage or for hay. Otherwise, when the adjuster shows up and the crop’s gone, you’re going to be disappointed in what he says your insurance amount should be.”

FAPRI analyst: Food price impact of drought not seen yet, but coming

Corn and soybean market prices have hit record highs this week due to the Midwestern drought, but so far the impact on consumer prices is just beginning.

Drought damaged corn on the Goyings Farm in Paulding County, Ohio on Tuesday, July 17, 2012. USDA photo by Christina Reed.

Pat Westhoff is the Co-Director of the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri. He says a consumer price report for June shows similar food price inflation to previous months. Price hikes are coming, but he says they’ll take time to reach supermarkets.

Changes in prices for products made directly from corn and soybean oil will come first. “The main effects are going to be probably a bit delayed because they’re going to happen through the livestock sector. As we all know, cattle production doesn’t turn on a dime, so it’s going to tack a while before we see reduced cattle numbers translate into less beef and less beef eventually turns into higher prices. Same holds for pork, same holds for chicken.”

Some manufacturers might start adjusting prices soon in anticipating of higher input costs. Westhoff says, “It’s important to remember a lot of those items are items where the farm value of the products that’s in those items is very small. If you buy a box of cereal, the actual amount of corn or wheat or something that’s included in that box of cereal is a very, very small share of the overall value of that product on the grocery store shelf. So, changing the farm price of corn or wheat by a lot only has a very small in proportion impact on prices at the grocery store.”

The good news, Westhoff says, is that the U.S. had been on track for lower food prices were it not for the drought. “So what this may do is instead of causing a huge, fast rate of growth in food prices in front of us, it may just stop what would have otherwise have been a decline in food price inflation in the months ahead.”

Westhoff says exactly how bad this year’s drought is won’t be fully known until it’s over, but among analysts it’s already being placed among historic company. “Clearly this has lots of parallels at least to 1988, the last time we had a really, really severe drought across the entire country … some people say it may be worse than 1988 already. Maybe more like some of the droughts of the 1950s.

“So there are some historic parallels but of course there are lots of things different in the world now than was the case back then.”