Bumper crop leads to storage issues

Farmers who grow corn and soybeans are experiencing a much different supply-and-demand scenario this harvest season than in years past -- with prices dipping -- at least in the short term.

A cool, mild summer with ample rainfall is responsible for record-setting yields, which agriculture experts say means more grain going to market and a lower return. Storing grain also is especially important this year, as some farmers want to sit on at least some of their yields with the hopes of winter bringing back higher prices.

"Coming into the harvest, there were higher speculated yields, combined with yields that were confirmed to be high," said Anthony Ohmes, an agronomy specialist at the University of Missouri Extension. "We really have seen some incredible ones. In some nonirrigated dry land fields near river bottoms, there have been some of the best yields ever had. Because of that, the price for corn has continued to be low."

The price per bushel for corn has fallen by more than half since the same time last year, when demand was higher because of a slower drydown period for plants that meant less availability. It dropped from about $8 to about $4. 2012 prices also were up because of drought, though farmers shelled out much more for water and fuel for irrigation systems.

This year, many farmers have had to pay less to maintain crops.

Nathaniel Choate holds handfuls of soybeans Oct. 9 at Southeast Missouri Regional Port Authority.

The Associated Press reported earlier this month the U.S. Department of Agriculture predicts the state's corn crop may reach 599 million bushels, while soybeans may reach 258 million bushels. Both would be all-time highs.

The USDA also reports corn and soybean harvesting in Missouri is behind schedule when compared with a five-year average. But the southeastern part of the state is mostly finished with corn, Ohmes said, and soybeans should be out soon if good weather holds through next week.

A later harvest this year presents a stark difference to 2012, when some area farmers began taking corn and other crops in mid-August after the weather caused plants to mature weeks ahead of schedule.

As of Monday, the state's corn harvest was 58 percent complete, according to the USDA, which is 17 percentage points behind the five-year average. Harvesting of soybeans was 25 percent complete, which is 21 percentage points lower than the five-year average.

But the delay in the harvest is not necessarily a bad thing.

LAURA SIMON ~ lsimon@semissourian.com Nathaniel Choate with First Missouri Terminals Inc. and port manager at Midwest Grain and Barge Co., probes a truckload of soybeans from Dutchtown for a correct sample from the load Oct. 9 at Southeast Missouri Regional Port Authority.

"Nationwide corn and soybean harvest is behind because of the past rain, and it has led to a bump in prices," said David Reinbott, an agriculture business specialist at the extension office.

Earlier this month, Reinbott predicted there would be no major rally in corn prices unless there were to be a delayed harvest.

"It is not unusual for prices to bounce 30 to 40 cents after we get halfway through harvest. I see prices going forward, trading between $3.20 [per bushel] to possibly $4 on the futures market," he said.

Another issue that comes with harvesting and selling a bumper crop is storage. Some farmers don't have many options when they wait for prices to rebound.

"Storage can become a problem for [farmers] who don't have it on-site, so have to sell at harvest and take a lower price," Ohmes said.

Grain storage companies also are having to find ways to handle the influx from this year's bumper crops, including using temporary locations such as ground piles, in addition to bin storage. Alternative storage methods are most likely to occur when there is a larger demand for freight than available to ship grain.

Unusually large loadings of salt and fertilizer, combined with other nongrain commodities, are competing with grain for transportation this fall, creating a tight freight situation, said Tim Baumgart, commercial manager for Consolidated Grain and Barge Co., which ships corn and soybeans on the Mississippi River.

Moving the record-setting crops this year by road also has prompted the Missouri Department of Transportation to allow grain haulers and other farm commodity carriers to carry up to 10 percent more than their normally allowed weight until Dec. 14.

eragan@semissourian.com

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