Floods & Drought Costing Ag Industry

The American Farm Bureau Federation’s June Market Update reported that crops have incurred more than $8 billion in estimated weather-related damage.  Iowa accounts for approximately half the damage. However, there are notable problems in at least a dozen other states ranging from the excessive wetness and flooding in Illinois to drought in California, USAgNet reports.

This results in a $4 billion blow to Iowa’s crops.  Other states taking a hit from excessive wetness and flooding are: Illinois, $1.3 billion; Missouri, $900 million; Indiana, $500 million; Nebraska $500 million; and an additional $1 billion in remaining wet states.

On the flip side, drought is taking a toll on several western and southeast states.  Northern California battled the driest spring in its history with $500 million in estimated damage.  This equals the estimated drought-related damage in all other states combined.

Nationally, the average corn yield is likely to decline some eight to 10 bushels per acre from the 2008 trend line, mostly due to inclement weather.  The national average soybean yield is also likely to be down one to two bushels per acre from the current USDA projection of 42 bushels per acre.