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Posts Tagged ‘drought’
Monday, December 26th, 2011
High peanut prices have convinced many farmers to diversify their crops to take advantage of temporary market demands. Farmers outside of the standard zone of peanut growth, primarily Texas and Georgia, have begun planting peanut crops, hoping to take advantage of high prices.
The price increase has been caused by unusually poor weather in peanut producing regions. In particular, Texas and Georgia have been hit by massive droughts that have caused billions of dollars in lost profits. These droughts have also prevented many farmers from growing water intensive peanut crops, lowering supplies and increasing costs.
In 2011, peanut production in the United States dropped by nearly 15 percent, causing prices to rise to nearly $1,000 a ton.
The high prices that peanut crops can fetch, as well as the fact that they require less attention (particularly with regards to fertilizer, pesticides, and weed treatments) than traditional cash crops like corn, soybeans, and cotton, serve as important lures to farmers across the country.
Peanut production offers a quick financial boost to cash strapped farmers, as well as a way to diversify crop production and better protect future incomes. While many farmers do not see this as a permanent change, they are more than happy to take advantage of a temporary price boom.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: drought, peanuts, texas
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Sunday, November 13th, 2011
According to recent studies by the Associated Press, farmers across the country are declining federal disaster loans. While this fact alone does not necessarily demonstrate larger systematic problems with federal agricultural assistance programs, it raises some important questions.
Over the last year, nearly every state in the country has experienced some variety of severe weather. From flooding along the Mississippi River, to heavy rain in the Midwest, to droughts in the Southwest and Kansas, and hurricanes in the East Coast, farmers across the country have been battered by storms.
In spite of these major crop losses, few farmers have accepted federal disaster aid. Studies of Farm Service Agency loans reveal that only about 300 disaster loans have been made this year, totaling about $33 million. Compare this figure to the over $1 billion lost due to droughts in Texas alone.
Many farmers reject disaster aid because they simply don’t need it. Citing high crop prices and generous crop insurance programs, some farmers have the resources to recover on their own, with many having saved up from years of high crop prices.
Others cite high interest rates on federal disaster loans. FSA disaster loans carry an interest rate of 3.75 percent, significantly higher than standard FSA rates. Hoping to avoid falling deeper into debt, some farmers are simply holding out for FSA disaster grants, which do not have to be repaid.
In light of the reluctance to take advantage of disaster loans, some groups have pushed for their elimination in the upcoming Farm Bill. With Congress eager to cut up to $2 trillion from the federal budget, the disuse of disaster loans could spell their end.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: disaster loans, drought, farm service agency, texas
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Sunday, October 23rd, 2011
Earlier this week, Lubbock Texas experienced a massive dust storm, with some dust walls reaching over 1 mile in height and over 200 feet in length. The storms, a frightening reminder of the 1930s era Dust Bowl, are the latest fallout from the ongoing drought that is devastating the state and crippling the Texas agricultural industry.
The drought, which has been ongoing for nearly a year, is one of the worst in Texas history. Conservative estimates place the potential economic loss from the lack of rain and water at nearly $6 billion, with some estimates reaching much higher.
In addition to crop and livestock losses, the lack of water and the resulting dry, parched land has caused a series of natural disasters, including devastating wildfires. Recently, dust storms have been added to that list of disasters. While not uncommon across Texas, dust storms are typically only 1,000 feet in height, much smaller than the recent 8,000 foot storm that descended on Lubbock.
Meteorologists are predicting more dust storms in Texas and across the Southwest as the drought continues. However, while the recent storms may be reminiscent of the 1930s, experts predict that we will not see another Dust Bowl, largely because of improved soil practices, conservation programs, and modern farming techniques.
However, some farmers have used this storm as powerful evidence of the continued importance of funding conservation programs. With Congress looking to trim over $20 billion from agricultural budgets, conservation programs are at the top of the austerity lists. As the president of the Oklahoma Association of Conservation Districts stated, “This storm should show why these cuts can’t all come from conservation and why it’s important that we keep a focus on natural resource protection on working farm and ranch land unless we want to see a new Dust Bowl.”
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: Conservation, drought, dust storms, texas
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Monday, October 3rd, 2011
A potential water proposal could ruin many Texas rice farmers, industry spokespeople said earlier this week. The deal in question regards the lower Colorado River and farmer’s access to it in the midst of the worst drought in recent Texas history.
The drought, which has been ongoing since last year, has devastated the state’s economy. Over 98 percent of Texas is suffering from severe to extreme drought conditions. Texas farm revenues are down billions of dollars and the state economy is poised to suffer severe hardships because of this lost revenue.
In the light of the drought and the accompanying water shortages, state officials have planned to cut off farmers’’ access to water in the lower Colorado River if reservoirs remain low. The initial proposal would have measured the reservoirs on January 1, but farm advocacy groups have managed to move that deadline to March 1.
While the proposal gives rice farmers in southern Texas two extra months to hope for rain, many are worried about the future. Without irrigation from the Colorado River, many rice farms, and other farms in the region, risk bankruptcy. Damage done to the agricultural sector will likely reverberate across Texas, risking job loss and high unemployment.
Since last October Texas has seen the driest year in its history since the 1890s. All that many Lone Star State farmers can do is hope for rain in the next few months.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: Colorado River, drought, texas, water shortages
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Thursday, August 25th, 2011
The drought in Texas that has crippled agriculture across the state shows no sign of abating. The drought began in October, quickly engulfing the entire state. Over 90 percent of Texas is currently experiencing severe to extreme drought conditions, conditions which have continued with no relief for months.
The severity of the drought has had deep consequences across the state. The financial losses alone have been devastating. At the present, Texas has lost over $5 billion due to crop failures. Entire fields of cash crops have withered and died and the prospects of a late season planting are looking increasingly grim.
In addition to crop farmers, Texas cattle ranchers have lost about $2 billion. Across the state, ranchers are selling their cattle, unable to afford or acquire the water needed to keep their livestock alive. The drought has also sent the cost of hay skyrocketing, adding another cost to an already struggling industry.
The severity of the Texas drought has led many to reconsider state agricultural policy. While some towns have weathered the drought thanks to access to large underground aquifers, towns that rely on rivers and streams are running dangerously low on water, forcing many to rely on long-term drought restrictions. Currently, the state is debating legislation to offer tax incentives to farmers that implement water conservation policies. In addition to tax breaks, the state is pouring money into agricultural research, particularly the development of drought resistant crops.
Overall, the situation in Texas highlights the need to rethink currently debated agricultural policies, specifically the importance of scientific research, as well as the necessity of conservation programs that help preserve the natural resources that agriculture depends on. As Congress meets to reduce federal spending, farmers across the country can only hope that they keep lessons of the Texas drought in mind.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: Conservation, drought, farm subsidies, texas
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Saturday, August 13th, 2011
Texas is still suffering from the worst drought in its history. The drought, which began in April, has held the state in its grip for months, withering crops, killing livestock, and threatening the economic sustainability of the state’s agricultural sector.
Texas is frequently wracked by poor weather and drought conditions. Previous to this year, the worst drought occurred in 2006 and cost the state over $4 billion in lost revenue (overall, Texas agriculture is a $100 billion industry). However, many state agricultural officials fear that this drought could top the 2006 losses. In 2006 the drought was contained in the southern part of the state. This most recent drought, however, is impacting over 90 percent of the state, leading many to worry about record financial losses.
The damage report is already staggeringly high. Earlier this week, the U.S. Department of Agriculture released estimates for Texas’s 2011 crop harvests. Cotton production is expected to be over 40 percent lower than last year (particularly bad news since cotton is one of Texas’s most lucrative cash crops). Corn is expected to drop by 41 percent, while wheat, along with soybeans, will be down by over 60 percent.
In addition to crop losses, Texas’s cattle industry is feeling the squeeze. Given their excessive water requirements, many Texas cattle ranchers have found themselves forced to sell their herds.
In response to the drought, Farm Service Agency officials have visited Texas while pledging their support. FSA Administrator Bruce Nelson has pledged that the agency will offer its full support in helping farmers through this rough time.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: drought, farm service agency, texas, usda
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Saturday, August 13th, 2011
As Texas Governor Rick Perry moves closer and closer to announcing his plans for a presidential run, his fiscal views are already coming under fire by agricultural interest groups across the country. Perry, a fiscal conservative, has repeatedly criticized deficit spending in Washington, calling it “out of control,” while supporting strict austerity measures. Included in his attack on spending are farm subsidies, which Perry has routinely criticized as wasteful.
It was in the mid 90s, as Perry moved up in state politics, that he began to criticize farm subsidies and farm spending, opposing agricultural programs such as ethanol production and direct farm payments.
However, as Perry moves closer to a presidential run, his personal background could undermine his fiscal positions. When Perry ran for Texas Agricultural Commissioner in 1990, he lauded the farm industry, praising financial support from Washington and praising farm subsidies programs.
Perry himself received over $80,000 in federal agricultural support during his tenure as a Texas farmer between 1987 and the early 1990s, including receiving nearly $10,000 in direct payments to not farm his 40 acres.
This flip-flopping on farm subsidies could cost Perry support in his presidential run. Texas is currently in the midst of a massive drought that has affected roughly 90 percent of the state. Many Texas farmers have been forced to rely on Department of Agriculture emergency loans in order to make ends meet in the midst of severe weather.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: drought, farm subsidies, Rick Perry, texas
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Saturday, July 30th, 2011
Earlier this week, the U.S. Department of Agriculture declared a state of disaster throughout Oklahoma. Like Texas, Oklahoma is reeling from severe droughts and wildfires which have damaged crops and prevented harvesting. The declaration was requested by Governor Mary Fallin on June 10, and covers 74 of Oklahoma’s 77 counties. The Governor initially requested that the declaration encompass all 77 counties, but the USDA was unable to adequately assess those counties not included in the declaration.
The declaration makes farmers eligible for aid from the Farm Service Agency, aid such as emergency loans and other financial assistance. The deadline for applications is eight weeks after the initial declaration.
Oklahoma is not alone in needing federal aid to combat poor weather. Across the country farmers have struggled with severe weather and have suffered millions of dollars in losses as a result of floods, tornadoes, droughts, and heavy rain.
Earlier in the week, the USDA reminded farmers who suffered from the severe weather to contact their local Farm Service Agency. In a statement last week, Secretary of Agriculture Tom Vilsack stated that the USDA was committed to aiding struggling farmers and that a variety of federal programs, such as the Supplemental Revenue Assistance Program, federal crop insurance, and the Noninsured Crop Disaster Assistance Program, were available to farmers in need.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: drought, oklahoma, usda
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Sunday, July 3rd, 2011
Dry, arid weather than has plagued much of the Southwest this spring and summer appears to have spread to Alabama. Drought conditions, which have been affecting the southern part of the state since April, show little signs of relenting. Agricultural Commissioner John McMillan stated that unless the state experiences rain, the drought could spread northward, forcing the Governor and federal officials to issue a disaster declaration.
The long drought has already devastated much of Alabama agricultural production. While about 94 percent of Alabama is experiencing unusually dry weather according to the U.S. Drought Monitor, farmers in the southern portion of the state are hardest hit. Some farmers report losses approaching 50 percent of their crop.
Others have managed to avoid complete disaster only through extensive use of irrigation. Sammy Williams of Henry County reports that he’ll likely save about 80 percent of his corn crop, but only because he has run his irrigation system almost nonstop for the past three months. Many farmers, however, are worried that the constant use of irrigation systems cannot be continued indefinitely.
Commissioner McMillan is recommending that Governor Robert Bentley declare a disaster state in several counties. That declaration, pending approval from Agriculture Secretary Tom Vilsack, would give Alabama farmers access to low interest federal loans and direct assistance for crops lost in the disaster.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: alabama, drought, Robert Bentley
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Friday, May 20th, 2011
Texas is currently in the midst of a severe drought, one of the largest in recent memory. According to the U.S. Drought Monitor, nearly the entire state is currently experiencing a drought, much of it severe to extreme. Even recent rainfall has done little to alleviate the stress placed on farmers and ranchers in the Lone Star State.
Current estimates predict that the financial losses caused by the drought will top $1.2 billion and could easily climb higher than that. One of the hardest hit agricultural industry is the livestock industry, which itself could experience over $1 billion in losses between November 2010 and May 2011. As the largest beef producing state in the country and with 90% of cattle producing counties experiencing severe to extreme drought, Texas is reeling from the abnormally dry weather. In addition to complications caused by lack of feed, many livestock water tanks are low or nearly empty. A lack of water to give to livestock could have dire consequences on the state’s cattle industry.
The drought could have an impact beyond farming and ranching. The loss of commodities and the inability to plant corn and wheat could lead to a drop in food supply. With farming purchasing more crops to feed livestock, prices could (and in the case of hay, have) go up in recent months, impacting all consumers nationwide.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: drought, texas
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