MOUNT VERNON — Ohio farmers have been spared the worst of the massive flooding that will slash yields throughout much of the Midwest this year, but that doesn’t mean they’re relaxing. Instead, the cool and rainy spring pushed area farmers’ planting far enough back that yields could be affected, at the same time the agricultural commodities markets are showing unprecedented volatility.
“The risk is so much greater than a couple of years ago,” said John Barker, OSU Extension agent for Knox County. “If I make the same mistake now that I made a couple of years back, it’ll cost me thousands of dollars more.”
One thing helping farmers hedge their bets is that crop prices are helping offset skyrocketing fuel prices.
“Inputs are up some, but so are crop prices,” said Mack Buckenberger of Agri-Trac Equipment in Utica, pointing out that corn was running around $3.30/bushel during harvest last fall, but has risen to over $7/bushel now. He said that business is good right now with equipment sales, and that a lot of farmers are optimistic.
“As long as we have something to sell, it’ll be a decent year,” Buckenberger said.
He said that however the season turns out, yields are certain to be lower than last year, when farmers were able to plant sooner.
Barker said reduced yields generally result in higher prices, but he said the situation is too volatile right now for any confident predictions.
“There are so many factors controlling the market right now, I can’t even guess what it’s going to be like at harvest,” Barker said.
Larry Dayton, sales manager at Mount Vernon Tractor & Equipment, said a sparse harvest in the rest of the Midwest is not likely to benefit many local farmers.
“A lot of farmers forward contract, so it won’t help them,” Dayton said.
He noted there may be some farmers who aren’t yet contracted for fall sales, but he said there wouldn’t be many. Despite that, commodity prices remain strong, which is why Dayton said there’s as much optimism as pessimism among his customers right now.
Both Dayton and Barker pointed out that one particular type of farmer is even more at risk than most: Livestock farmers. Barker said farmers raising livestock could be heavily affected by a corn market that keeps going higher and higher. USDA statistics show that corn, which held steady between $2 and $2.50/bushel in 2005 and 2006, has tripled since then.
“Livestock people are really the ones who are suffering,” Dayton said.
