Thursday, July 27, 2006

Drought of '06: Texans baling soybeans; many Ala. soybean acres won't be cut

Two items from the American Soybean Association's July 27 Leader Letter:

Texas Producers Baling Soybean Crop: Severe drought has many soybean producers in Central, North Central, and Northeast Texas baling their soybean crop for hay. "The last measurable rain on my farm was on Memorial Day," said ASA Board member Carl Weets of Cooper. "It’s so dangerously dry that you don’t dare strike a match." Weets said most of the region has received only 3 to 4 inches of rain since the crop was planted. Baling the crop is netting one-half to as much as two tons per acre in a few cases, which sells for $110 to $120 per ton. Weets estimates that at least 70 percent of the soybeans in the region will be baled this year. "A few fields that I’ve combined yielded between 8 and 20 bushels per acre," Weets said, "and the local basis, which typically runs 40 cents under, is now running 60 to 70 cents below." Weets said that 2006 is the eighth drought year in a row for area farmers, and each year has been worse than the one before. "Crop insurance is worthless," Weets said. "Nine years ago, my APH (average production history) for beans was 30 to 40 bushels. Now it’s in the low 20s. This year is going to put a lot of people out of business."

Alabama Growers Facing Severe Drought: Alabama Soybean and Corn Association President Don Glenn reports that his state is in the midst of a severe statewide drought. "Crop conditions are the worst seen in many years," Glenn said. "All of the states major crops are being affected. Cotton, corn, and soybean yields will all be far below average this year, with many acres not even being harvested. Even the state's horticulture industry is being adversely affected." The drought is worse in the southern parts of the state, where the drought goes back to last fall. Some areas were so dry at planting time that crops were not even planted. Livestock is not immune to the weather either. "Many farmers are already feeding hay that is in short supply to livestock," Glenn said. "They will have little feed to fall back on this winter." The heat is also taking a toll on the state poultry industry in the form of high heat mortality rates. Water levels in the state’s catfish ponds are far below normal causing aeration and oxygenation problems. "This season is going to leave many of our state’s farmers facing financial hardship," Glenn said. "This will be particularly true in South Alabama where farmers have lost the last two crops to hurricanes. Farmers in this area are looking at the third year in a row of crop losses. We are not a major crop production area, so our drought is not drawing national attention. But the hardships are being felt by our farmers just the same."

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