Minnesota farmers preparing to cope with very low soybean and corn yields

Posted 8/15/01

Minnesota farmers preparing to cope with very low soybean and corn yields

This year's corn and soybean yields in much of Minnesota could be the lowest in several years.
Producers with poor yield prospects need to make adjustments, says Blue Earth County educator Kent Thiesse of the University of Minnesota Extension Service.
Setbacks to this year's crops have included cool, wet spring weather that delayed or prevented planting; heavy rains in early
June that flooded some fields; hot, dry weather in late June and
July; and wind and hail damage.
"If corn and soybean yield prospects appear to be significantly lower than average, it's probably a good idea to review the farm business management plans and cash flow projections for 2001 and make adjustments," Thiesse said.
"It's also a good idea to keep ag lenders and other creditors informed about crop prospects and potential cash flow impacts,î he said. ìProducers with crop insurance need to account for any potential crop insurance indemnity payments."
Farm operators who have a flexible cash rent lease or other
rental contract provisions that allow adjustments for natural disasters need to contact their landlords, said Thiesse.
It might also be good to show landlords the fields and explain likely yield reductions. Sending pictures is a way to keep absentee landlords informed.
"It's usually much easier to negotiate rental adjustments at
harvest if there has been good communication between the producer and landlord during the growing season," Thiesse said.
"It's always a good idea to document planting dates, rainfall amounts, severe storm dates and damage and other pertinent information," he said
Federal crop disaster payments for this year, similar to the last two years, are a possibility, said Thiesse.
However, neither Congress nor the U.S. Department of Agriculture has taken any action on disaster payments for the 2001 crop at this time.
It's very likely that Congress will pass another piece of emergency farm legislation in coming weeks, Thiesse said.
The legislation will likely include a market loss assistance payment this fall, using the Agricultural Market Transition Act (AMTA) payment formula, and another oilseed payment early in 2002.
"The 2001 payment rates for both the extra market loss assistance payment and the oilseed payment are likely to be less than the 2000 rate," said Thiesse.
"Last year's market loss assistance payment rate was 36.3 cents per bushel for corn and the oilseed payment rate was 14.25 cents per bushel for soybeans,î according to Thiesse.
ìThe emergency legislation the U.S. House passed in June would lower those payments to about 30 cents per bushel for corn and 12 cents per bushel for soybeans in 2001," he said.
This year's corn is likely to need more drying than was necessary the past couple of years, Thiesse said.
Producers may want to line up drying gas needs for fall to protect against supply problems or rising prices.
In addition, grain drying and handling systems should be in good repair prior to harvest.