Terry Birk, Farm Service Agency executive director, talks drought vs. wet weather

Terry Birk grew up on a Southeast Missouri farm. As the USDA's Farm Service Agency executive director for Cape Girardeau and Bollinger counties, he serves as a resource to local farmers. We talked to Birk about this year's crop outlook, lasting effects from the 2012 drought and this year's wet weather:

Business Today: How long have you been with the Farm Service Agency? Why did you pursue a career in agriculture?

Birk: In October I will have worked 30 years for FSA. I was raised on a local farm and have always been interested in agriculture. American farmers produce the most healthy food in the world, which is very essential to our nation's well-being. I enjoy being a small part of that.

Business Today: Last year Southeast Missouri was under a severe drought. What lasting impact did that have on the local agriculture industry?

Birk: The drought caused a significant financial loss for many farmers. The drought resulted in tremendous yield losses on field crops, hay and pasture. It will take several years for many farmers to recover from the financial loss.

Business Today: So far this summer, lack of rain hasn't been a problem -- June was the second wettest on record. Has the rain created any challenges for farmers?

Birk: Yes, this year is the opposite of last year for precipitation levels. The Mississippi River, Diversion Channel and local creek flooding has prevented some farmers from planting this year. Some land was planted and then flooded, resulting in failed crops. Heavy rains have caused some very poor stands of crops and caused replanting of sizable acreages. Wet field conditions have delayed wheat harvest and planting of soybeans after wheat.

Business Today: The drought was also hard on hay production and pastures. What effect did that have on livestock producers? Is it looking better this year?

Birk: Hay yields last year were one-third to half of normal. As the drought intensified the pasture went to zero. Farmers either sold some cattle or bought hay, or did some of both to survive. Hay and grain prices were high, which resulted in the most expensive year ever for livestock farmers. Beef and dairy farmers both had a rough year, with dairy farmers especially feeling the effect, since they feed higher priced grain and commodity feeds.

It has been difficult to make hay this year, but the grass is growing well in pasture fields. I would rather have the rain this year than another year of drought anytime.

Business Today: How are the corn and soybean crops looking so far?

Birk: In general corn and soybeans look good with the exception of the lower-lying areas. The lower-lying areas are adversely affected by the high rainfall and crops there were planted late or not at all. Weather throughout the rest of the summer will determine the final yields. A late frost will enable the late planted crops more time to grow and mature.

Business Today: What's the greatest challenge facing our area's farmers?

Birk: High input costs are a very big challenge. Prices received by farmers have gone up in recent years, but input costs have increased more than grain, livestock and milk prices. Seed, fertilizer, chemical and machinery costs continue to increase. When prices received fall and input costs stay high, farmers will be in a loss situation. Farmers borrow and risk more money every year. It is a very high-risk business with a low profit margin.