Podcast Summary
Hurricane Debbie's Impact: Hurricane Debbie brought heavy rain to the southeastern US, causing economic losses and negatively impacting the grain market, while yield tours assess crop progress in the Midwest
Hurricane Debbie brought heavy rain to parts of Florida, Georgia, and the Carolinas, causing no specific damage but negatively impacting the economy and grain market. The grain market, along with the stock market, saw declines due to the Federal Reserve's announcement of inflation and job market concerns. The yield tours, such as Pro Farmer Crop Tour and DTN Crop Tour, are currently underway in the Midwest, including central Illinois, to assess crop progress during the harvest season. Tom Blackman from Prairie Farmers spoke about the corn crop in the Eastern Corn Belt, noting that Indiana and Ohio have had good moisture, despite the heat, but Illinois had an earlier planting season. Overall, the agricultural news covered the hurricane's impact on the economy and grain market, as well as the ongoing yield tours to assess crop progress.
Corn and Soybean Crop Condition, Midwest: The Midwest corn and soybean crops are mostly in the grain fill or early milk stage, with good overall condition due to sufficient rainfall. Farmers should focus on controlling late-blooming weeds, particularly waterhemp, to prevent resistance issues.
The 2023 corn and soybean crop in regions like Michigan, Kentucky, Indiana, and Ohio is currently in various stages of growth, with most of it in the grain fill stage or early milk stage. The overall crop condition looks good, with minimal weed issues reported in central Indiana due to sufficient rainfall that enabled effective early herbicide application. Farmers should focus on controlling late-blooming weeds, particularly waterhemp, to prevent seed production and potential resistance issues. The growing season has been favorable overall, with the cornfield being planted early in May and receiving sufficient rainfall since then, while soybeans were planted around the same time. However, there was a brief dry spell in early June, but the crops have since recovered.
Midwest Agriculture: Midwest farmers face challenges like dry conditions, diseases, but remain optimistic for decent to above-average corn and soybean yields with adequate rainfall in August
The current agricultural season in the Midwest is showing both challenges and promising prospects. While some areas, particularly in Central, Western, and South West Ohio, are experiencing dry conditions and require irrigation, others have received sufficient rainfall. Diseases such as southern rust, white mulch, and tar spot are present in various regions, leading farmers to consider whether to apply fungicides to their crops. The overall outlook, however, is positive, with the potential for decent or even above-average corn and soybean yields, especially for soybeans, if rainfall is received during the critical upcoming weeks in August. The field being monitored is expected to yield over 200 bushels per acre. Despite the challenges, farmers are making decisions to optimize their crops and adapt to the conditions.
Midwest crop diseases and weather challenges: Despite challenges from tar spot, common rust, and unusual weather, Midwest crops are currently looking average or better, but close monitoring is necessary as the season progresses
The corn and soybean crops in the Midwest are facing various challenges, including tar spot in Illinois and Indiana, common rust in Nebraska, and unusual weather conditions. While tar spot has been confirmed in some areas, it hasn't spread extensively yet. Common rust is also prevalent in Nebraska, making it difficult to distinguish between the two diseases. The weather this year has been unpredictable, with some areas experiencing too much rain, while others are too dry. Despite these challenges, the crops are currently looking average or even better in some places. However, this could change as the season progresses, and it's important to continue monitoring the situation closely. Overall, farmers are adapting to the unusual weather patterns and working to mitigate the impacts on their crops.
Central Illinois crops: Central Illinois crops faced a prolonged 2023 planting season due to unfavorable weather, but 81% of corn and 85% of soybeans are now rated good to excellent. Farmers must monitor potential issues during grain fill, such as aphid infestations, and inconsistent corn emergence.
The 2023 planting season in Central Illinois was prolonged due to unfavorable weather conditions, taking about two months to complete. Despite the delayed start, the crops are now in good shape, with 81% of the corn and 85% of the soybeans rated as good to excellent in the USDA crop progress report. However, growers need to keep an eye on potential issues during grain fill, such as aphid infestations. These pests have emerged in large numbers on some fields, covering up to 50% of the plants. The emergence of corn was also inconsistent due to the challenging planting conditions earlier in the season. Overall, while the crops are currently in good shape, farmers must remain vigilant to ensure optimal growth throughout the remainder of the growing season.
Crop emergence challenges, weed pressure: Heavy rainfall post-planting hindered crop emergence, warmer temperatures and excessive rainfall in May-June increased weed pressure, particularly from hard-to-kill weeds like tall water hemp, and late herbicide applications may not provide adequate coverage and could result in harvest restrictions
The heavy rainfall right after planting negatively impacted crop emergence, particularly in lighter soil types, clay soil types, and no-till conditions. Additionally, warmer than normal temperatures and excessive rainfall in May and June led to increased weed pressure, with hard-to-kill weeds like tall water hemp causing significant issues in both corn and soybean fields. Growers have had to apply multiple herbicide applications to control these weeds, but late applications may not provide adequate coverage and could result in harvest restrictions. The lack of effective residuals due to dry conditions last year also contributed to the current high water hemp pressure.
Illinois crops: 81% of Illinois corn, 75% of soybeans rated good to excellent by USDA. Cooling temperatures ideal for grain fill. Adequate moisture mitigates negative effects. Farmers must monitor for nitrogen deficiency, disease pressure.
The crops in Illinois are in excellent condition, with 81% of corn and 75% of soybeans rated as good to excellent by the USDA. The forecast for central Illinois calls for cooling temperatures over the next week to 10 days, which is ideal for grain fill. While there have been some warmer conditions recently, adequate moisture has helped mitigate any negative effects. However, farmers need to continue monitoring their crops for potential issues such as nitrogen deficiency and disease pressure, particularly as temperatures cool and diseases like tar spot become more prevalent. Overall, the crop in central Illinois is looking strong, but farmers must remain vigilant to ensure optimal yields.
Corn maturity stage issues, harvesting: Farmers must monitor corn crops during maturity for pests, diseases, and nitrogen deficiencies while considering the pros and cons of timely harvesting versus letting the crop dry naturally in the field for potential market gains.
Farmers need to stay vigilant during the maturity stage of their corn crop, keeping an eye out for potential issues such as pests, diseases, and nitrogen deficiencies. Timely harvesting is crucial to maximizing profits, but leaving the crop in the field to dry naturally may be an attractive option given current commodity market conditions. Our guests, Kevin Gauth from Agri-Gold in Illinois and Logan Hartwig from Momentum in Tennessee, discussed these topics while wrapping up their time in Memphis. Their crop insurance company, based in Philadelphia, covers various commodities including corn, cotton, rice, soybeans, and wheat. Kevin, who has been in the crop insurance industry since 2018, emphasized that the pricing for crop insurance is determined by government subsidies to the Agriculture Risk Protection Act (APA) and not through their firm offering a premium.
Crop Insurance Updates: Staying informed about crop insurance program updates and potential risks, such as hurricanes, is crucial for farmers, despite minimal price variations between competitors.
While the prices for federal crop insurance may not vary significantly from one competitor to another, it's essential to keep farmers informed about changes and updates in the program each year. The federal crop insurance program's price can fluctuate based on market conditions and revenue guarantees, but the differences are minimal from county to county. ARC and PLC, which are not private but government programs, offer farmers two options for price support, and their positioning varies for different crops. Hurricanes are a typical risk in the southern regions, but the extent of damage can vary from year to year. While there have been some instances of crop damage due to moisture and heat this year, no significant hurricane damage has been reported yet. Overall, staying informed about the crop insurance program and potential risks, such as hurricanes, is crucial for farmers.
Illinois commodity markets: Corn, soybean, sweet futures saw gains of up to 10 cents per bushel, while cattle futures rose up to $6 per hundredweight. Crude oil declined $9 per barrel and the Dow Jones index decreased three points.
Key takeaway from today's discussion on Back Roads of Illinois is that commodity markets in Illinois saw significant gains in corn, soybean, and sweet futures, with increases of up to 10 cents per bushel for sweet futures. Cattle futures also rose, with gains of up to $6 per hundredweight for lean hogs. However, crude oil finished the day with a decline of up to $9 per barrel. The Dow Jones index also saw a decrease of three points. Overall, the agriculture sector showed strength, while the energy sector experienced a downturn. Thanks to Tom Blackman and Kevin Bob for their insights on these developments. Tune in to Back Roads of Illinois on YouTube or wherever you get your podcast for the latest commodity market updates.