2012 corn harvest problems

   The challenges of the 2012 corn crop are not over.  As we begin harvest we are faced with uneven fields.  Many ears are barely holding onto the plants that have died from the drought many weeks ago.  There will be soft cobs and small light weight kernels.  Some areas have yields below 50 bu./acre.  The modern combine is designed to harvest high yields efficiently.  This year there will be higher loss from the header (part that removes the ear from the plant) as smaller ears drop or get broken and fall down to the ground.  Next the combine will need to separate the seed from the other plant residue.  I expect that more plant matter will end up going through the machine as normal and healthy plants are anchored to the ground where this crop is dead and poorly attached. Harvest loss will be higher as a result of these two factors.  Reduced yields are deduced further when harvest loss is totaled.
   Most farmers feel comfortable forward pricing 60-80% of production and market advisers generally develop a plan within that range.  No plan is perfect ant that will hold true this year.  The farmers that only will produce 30% of normal production but contracted 60% will have to pay a price penalty on undelivered but contracted production of about $200 / acre.
   Storage of drought damaged corn also has it's challenges.  The extra amount of small and broken seeds limit good air ventilation in the storage bins and some corn will have mold on the seed.  If the moldy corn is put into storage and not dried enough and ventilated enough the mold continues to grow further damaging the value.
  Limited supplies of grain this year have sent corn and beans near all time highs.  Some users will no longer be able to afford to purchase at current prices and instead to go out of business.  That causes a problem when we again produce high yields but have lost the demand of our customers.
   As you can see the problems will have a long lasting effect before returning to normal.
    I hope that these updates are useful to my readers and am surprised on the diversity of my audience.  Here you can see some of the countries that have followed us.
 

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                                                                         Serving Together,  Dean Lundeen

2 comments:

1. August 24, 2012 8:00 PM

   Dean, your blog is informative, although alarming. I keep all farmers and those engaged in agriculture in my prayers. Linda
2. Dean LundeenAugust 25, 2012 2:40 PM

   Thank You, Linda. I try not to be too alarming but this is the worse drought in 75 years for the U.S.. Fortunately we are normally blessed with the best weather to grow crops. Long range weather models are looking better for next year but the effect of this short crop will linger for several years. Dean