Tuesday, December 31, 2024

November Ag Prices Received Index Up 6.8 Percent; Prices Paid Up 0.5 Percent

November Prices Received Index Up 6.8 Percent  

The November Prices Received Index 2011 Base (Agricultural Production), at 120.2, increased 6.8 percent from October and 5.4 percent from November 2023. At 94.6, the Crop Production Index is up 5.7 percent from last month but down 6.8 percent from the previous year. The Livestock Production Index, at 158.8, increased 2.5 percent from October and 19 percent from November last year. Producers received higher prices during November for lettuce, market eggs, grapes, and broccoli but lower prices for milk, soybeans, onions, and hay. In addition to prices, the volume change of commodities marketed also influences the indexes. In November, there was increased monthly movement for corn, cattle, market eggs, and milk and decreased marketing of soybeans, grapes, wheat, and lettuce.  

November Prices Paid Index Up 0.5 Percent  

The November Prices Paid Index for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW), at 140.3, is up 0.5 percent from October 2024 and 0.4 percent from November 2023. Higher prices in November for feeder cattle, feeder pigs, nitrogen, and supplements more than offset lower prices for complete feeds, concentrates,  hay & forages, and diesel. 







Idaho And Western United States SNOTEL Water Year (Oct 1) to Date Precipitation % of Normal (12/31)








Top 10 Ag Stories of 2024: No. 1

With Farm Bill Shelved, Congress Pumps Economic Aid Into Farm Economy


OMAHA (DTN) -- Congress proved unable to find a bipartisan path to pass a farm bill in 2024, but the end result played out better for commodity farmers due to a needed injection of financial aid.

Without five years of new policies, Congress on Dec. 20 passed a one-year extension of the farm bill that also included $10 billion of economic aid for commodity crops. Spurred largely by Hurricane Helene, the year-end bill also includes another $20.78 billion to help farmers recover from two years of natural disasters.

Under the latest efforts, Congress will have until Sept. 30, 2025, to try again to pass a farm bill after two years of failing to agree.

Republicans who support farm programs vowed all year to "put more farm back into the farm bill," which became a mantra as they made their case. Still, there were other House Republicans not on the Agriculture Committee who opposed increasing reference prices and farm subsidies. The House farm bill passed the committee in May with four Democrats joining 29 Republicans to advance the bill and 21 Democrats rejecting it. The lack of House GOP consensus effectively shelved the legislation from getting a floor vote for the rest of the year.

The Senate never got that far. Sen. Debbie Stabenow, D-Mich., who retired from Congress rather than run for reelection in 2024, had argued it was too costly to raise reference prices. She wanted more investment in policies that improve crop insurance options for all farmers rather than raise prices only for farmers with commodity base acres.

"When you ask farmers the most important part of risk management for them, it's crop insurance," Stabenow told reporters last April.

Sen. John Boozman, R-Ark., now the incoming chairman of the Senate Agriculture Committee, said he believed it would be better to get a farm bill done in 2024 rather than wait.

"I would argue for farmers that we have as great a chance, an easier chance, of getting a farm bill done this year rather than next year," Boozman told reporters.

Stabenow didn't offer an actual bill until after the presidential election. With Republicans taking over the Senate and the White House, there would be no negotiations on a five-year bill in a lame-duck session.

Boozman led other Republicans to call for one year of economic aid to farmers instead. That eventually became the $10 billion in one-time economic aid to commodity growers.

A YEAR OF DEBATE AROUND CCC

Early in 2024, Agriculture Secretary Tom Vilsack floated the idea of Congress using the Commodity Credit Corp. (CCC) to find a way to raise reference prices for the next farm bill, noting that increasing reference prices can get "pretty pricey." A 10% bump in reference prices is projected to cost about $2 billion a year.

The CCC is a $30 billion fund used each year by the secretary specifically to help support commodity markets. CCC dollars already fund the Agricultural Risk Program and Price Loss Coverage (ARC and PLC) programs as well as the Conservation Reserve Program (CRP).

Republicans in Congress had another plan. After Vilsack used $3.1 billion to create the Partnership for Climate-Smart Commodities, GOP lawmakers started considering more plans to restrict the Agriculture secretary's control of the CCC, and then take the projected savings to fund their plan to increase reference prices.

The fund was used aggressively during the first Trump administration, which included $23 billion in Market Facilitation Program payments in 2018-19 because China stopped buying U.S. commodities during the trade war.

House Agriculture Committee Chairman Glenn "GT" Thompson, R-Pa., included language to cut off USDA from using CCC dollars without congressional approval. Thompson's staff maintained the move provided $53 billion over 10 years that would go to boost commodity programs and crop insurance.

THE IRA FIGHT

Stabenow won the battle to get $19.5 billion conservation funds in the Inflation Reduction Act (IRA), which Democrats passed in 2022 with zero Republican votes. To protect those remaining funds, Stabenow agreed with the idea of rolling those IRA dollars into the farm bill as long as the funds went toward practices that reduce greenhouse gas emissions or sequester carbon.

The House farm bill brought in the leftover funds from the IRA and kept those dollars strictly for conservation but also removed the climate-specific focus on those funds.

In the end, the unspent pot of money, about $14 billion or so, could be lost. Stabenow came up with a plan to roll those dollars into the farm-bill extension. The funds would increase the baseline for farm-bill conservation programs but also provide a one-time offset that allowed $10.7 billion to go to economic aid. House Speaker Mike Johnson, R-La., rejected that idea, saying his caucus would not support saving those IRA dollars. In an interview with DTN, Stabenow called the decision "political malpractice."

The GOP is expected to take away those IRA dollars when they pass their own budget reconciliation bill next year.

THRIFTY FOOD PLAN

A key budget move for the House version of the farm bill was to adjust or reverse engineer changes USDA made to the Thrifty Food Plan. USDA early in the Biden administration updated the cost estimate for determining a healthy diet for SNAP recipients. In the past, those USDA updates were always "budget neutral," but the Biden administration updates increased the future projected costs of SNAP by nearly $30 billion a year.

By forcing USDA to go back to a budget-neutral calculation, the House farm bill plan suddenly had money to move around. Thompson took an estimated $27 billion on the back end of cost projections and used it to help with his plan to boost farm programs, trade promotion and research funding.

The change would restrict how future administrations make changes to SNAP. That includes potentially restricting a "hard right future administration" from "arbitrarily coming in and cutting benefits," Thompson explained.

Still, Democrats overall rejected the plan. Rep. David Scott, D-Ga., then the committee's ranking member, was among those who criticized Thompson plan, calling it a "poison pill" for Democrats.

OTHER WISHES

Beyond higher reference prices, at least some commodity groups also want the next farm bill to update base acres. The National Corn Growers Association (NCGA) voted to keep pressing Congress for a mandatory update of base acres. The American Soybean Association (ASA) opted for a voluntary update. The National Association of Wheat Growers (NAWG) opposed any changes to base acres -- except allowing farmers who currently don't have base acres to enroll.

A mandatory update of base acres would actually save about $1.9 billion over 10 years.

The House farm bill offered a one-time opportunity to expand base acres by up to 30 million acres.

PROP 12 FIX -- MAYBE

As if the farm bill didn't have enough conflicts, the battle over states' rights versus open national commerce came into play. In dealing with the effects of California's Proposition 12, the House version of the farm bill included language that states and local governments cannot impose conditions on the production of livestock located out of state.

The National Pork Producers Council expressed frustration when that language was not included in the final farm-bill extension.

WHAT'S NEXT

A new Congress will return on Jan. 3, 2025. Just like last year, lawmakers will come back with a lot of unfinished business and will try to pass a budget for FY 2025, which began last October. Republicans will be looking to use the budget reconciliation mechanisms to pass their own immigration and energy bills, along with clawing back as much of the Inflation Reduction Act as politically possible.

Somewhere in the mix, the House and Senate Agriculture committees again will have to figure out how to pass a farm bill. Unless attitudes change, lawmakers will lose access to the IRA dollars for conservation. The incoming Trump administration also likely will not want Congress to handcuff the Agriculture secretary's access to the CCC funds. So, any increase in commodity programs will have to find budget offsets elsewhere.

Then there is Elon Musk and the Trump administration's drive to cut spending. The farm bill is a 10-year, $1.5 trillion spending bill. It's likely Musk and others will be weighing in to demand cuts.

Democrats will have new leaders on the Ag committees with a real "Land of 10,000 Lakes" vibe. Sen. Amy Klobuchar of Minnesota will take over as ranking member of the Senate Agriculture Committee. In the House, Rep. Angie Craig of Minnesota will be the ranking member for the Ag Committee as well.



Monday, December 30, 2024

Bureau of Reclamation, Pacific Northwest Region - Storage Reservoirs in the Upper Snake River (12/30)



Average daily streamflows indicated in cubic feet per second.
Reservoir levels current as of midnight on date indicated.

Upper Snake River system is at 59 % of capacity.
(Jackson Lake,Palisades, Grassy Lake,Island Park,Ririe,American Falls,LakeWalcott)
  
Total space available:1653787 AF
Total storage capacity:4045695 AF




Top 10 Ag Stories of 2024: No. 2

Bumper Crops, Struggling Prices Weigh on Grain Farmers' Incomes


MT. JULIET, Tenn. (DTN) -- Shoot for the moon, and you'll land among the stars. That's exactly what corn and soybeans did in 2024, with corn production hitting its third highest total and soybeans just narrowly missing a record.

Despite national average corn yields setting a record at 183.1 bushels per acre (bpa), total production declined 198 million bushels (mb) from last year as acreage shrank.

Soybeans came within 0.2 bpa of a new record yield, and overall production is estimated to be about 3 mb smaller than 2021's record, according to the December World Agricultural Supply and Demand Estimates report.

Late-season dryness may have stolen 2024's chances at soybean records, but it wasn't enough to change the trajectory of prices for farmers, which meant fewer opportunities for profitable grain sales. The resulting lower feed prices were good for livestock producers, and that's why USDA estimates net farm income will decline only 4% from 2023 to $140.7 billion.

FARM INCOME FORECAST CHANGED

The farm income forecast has changed dramatically during 2024. USDA's Economic Research Service issues its initial forecast in February, and provides updates in September and December, and finalizes its estimate the following February. Its initial forecast called for incomes to decline by 25% from the year before and 41% from the 2022 record.

February's initial assessment thought livestock producers would struggle too, but once the agency began collecting actual data on production expenses including feed, seed, fertilizer and fuel instead of forecasted prices, the overall picture of the farm economy improved.

The divergent fortunes of crop and livestock producers can be seen in cash receipts. Crop receipts are forecast to decrease by $25 billion from 2023's levels, while animal/animal product receipts are projected to increase by $21 billion. Corn and soybean receipts saw the sharpest drop off, declining 21% and 12% respectively, as falling prices outweighed the increased volume of grain sold.

Economists stress that the average net farm income remains above its 20-year historical average. A survey of bankers by the American Bankers Association and Farmer Mac found that lenders expect 58% of borrowers will remain profitable in 2024 compared to 78% last year.

ECONOMIC CONDITIONS WORSENING

Excess liquidity from 2022 has helped farmers, especially row crop producers, manage the past two years of the down cycle. Nathan Kauffman, senior vice president of the Federal Reserve Bank of Kansas City, acknowledged that economic conditions were worsening at USDA's Agricultural Outlook Forum.

"Yes, incomes are lower. Profit margins are tighter. Credit conditions are still strong but weakening a bit," he said. "If by chance we were to get another year ... where you see another reduction in farm income and a similar percentage decline in working capital, now we're starting to get into the territory that we were in agriculture between 2016 and 2019, and we know that those were not strong years."

A mid-December study by the Farmdoc Daily team examined the working capital to operating expense ratio of members of Illinois Farm Business Farm Management Association. The ratio measures a farm's ability to pay its expenses with working capital instead of revenue, and a number above 0.4 is considered strong. Ratios between 0.2 and 0.4 are considered cautionary, while ratios below 0.2 are considered vulnerable. 

Illinois grain farms enrolled in the program had significant improvement in the working capital to operating expense ratio between 2019 and 2021, increasing from 0.614 to 1.15. It's declined since then, coming in at 0.86 in 2023.

"This ratio closely mirrors the trend of accrual net farm income over the same period," the post's authors wrote. "It peaked at 1.15 in 2021 but has since declined to 0.860 in 2023, although it remains within the strong range. This recent downward trend, combined with rising operating expenses and decreasing working capital, suggests potential liquidity pressures."




Friday, December 27, 2024

Top 10 Ag Stories of 2024: No. 3

Trump is Re-Elected in a Campaign Filled With Dramatic Moments


OMAHA (DTN) -- President-elect Donald Trump's presidential win was a historic reversal of fortune considering the turmoil before and after Trump left the White House in 2021.

Trump, 78, is the oldest person to be elected president in history, beating out current President Joe Biden, who was 77 when he defeated Trump in 2020. Trump also became the first president since Grover Cleveland in the 1890s to win non-consecutive terms.

There was a little drama at the start of 2024 in the primaries. The race was going to be Biden versus Trump again, barring some remarkable circumstances. Biden had no real competition on the Democratic side. For Republicans, Trump easily swept aside Florida Gov. Ron DeSantis, former United Nations Ambassador Nikki Haley and businessman Vivek Ramaswamy, now a Trump advisor. Trump officially clinched the GOP nomination in early March.

Throughout the year, drama and heavy news coverage followed Trump across the country. Even as the Republican frontrunner, Trump faced court appearances and charges in New York and Georgia. In May, Trump was convicted by a jury in New York of 34 felony counts tied to using hush money to pay off a porn actress before the 2016 election.

While the election initially involved the two oldest candidates in history, Biden's age, at 81, became a glaring risk for Democrats, especially after a poor debate against Trump in late June. By mid-July, the Democratic base had pressed Biden to step aside for Vice President Kamala Harris to run. Harris became the first Black woman nominated by a major party to run for president.

Another major event happened at a mid-July rally in Pennsylvania when Trump was slightly wounded in an assassination attempt that killed one spectator and wounded two others. Trump's supporters rallied around the video and photos of Trump, slightly bloodied, raising his fist in defiance.

Just a day after the shooting, Trump announced on Truth Social he had picked Ohio Sen. J.D. Vance to be his running mate. Vance, 40, who had been elected to the Senate in 2022, will become the youngest vice president since Richard Nixon when he is sworn-in next month.

Harris' campaign injected needed enthusiasm for Democrats. Seeing a weakness in the party, Harris tapped Gov. Tim Walz in an attempt to chip away at Trump's support among Midwest and rural votes. Walz attended rallies wearing a flannel shirt and ballcap. The Harris-Walz campaign rolled out an agenda for rural America that included boosting credit to farmers and investing more in conservation practices. Radio ads featuring Walz ran across the battleground states.

While there was an array of issues throughout the campaign, Trump would often mention farmers at rallies. In Pennsylvania, Trump said, "our farmers aren't being treated properly." He added, "The farmers in this country, we're going to get them straightened out."

Farmers throughout the campaign, especially near the end, raised concerns about Trump's plans for tariffs as well as how mass deportation plans could wreck a lot of labor-intensive farm operations. Still, farmers overwhelmingly back Trump.

The DTN/Progressive Farmer Pulse of Rural America poll, conducted in late August-early September, showed Trump with just under 70% support among rural Americans while Harris carried just 19% at the time.

The poll also showed frustration among farmers over the economy, inflation, regulations and interest rates. One young livestock producer from Nebraska pointed out how much more expensive operating loans had become compared to Trump's time in office.

The Pulse of Rural America poll, however, didn't quite match up with national polls at the time showing the presidential race was close.

A late shocker came just before Election Day when the Des Moines Register poll indicated Harris had a slight lead over Trump. That poll, now the subject of a lawsuit from Trump, ended up being way off as Trump carried 56% of the vote in Iowa. Trump got more than 70% of the vote in more than 40 rural Iowa counties.

Looking at the numbers, the popular vote nationally was close. Trump defeated Harris 49.9% to 48.4%, or a 1.5% margin. But Trump swept the battleground states in the process -- Arizona, Georgia, Michigan, North Carolina, Nevada, Pennsylvania and Wisconsin all went Trump's way.

While people expected a long time to declare a winner, it was apparent in the pre-dawn hours of Nov. 6 that Trump had won re-election.

Trump quickly began naming Cabinet members. He has selected former advisor Brooke Rollins to serve as his agriculture secretary.

An agent of chaos on social media throughout his first term, Trump and his team have already re-established that pattern. Trump has threatened tariffs on Canada and Mexico over border issues. Just last week as Congress was trying to close out the year and pass a funding bill and an extension of the farm bill, Trump weighed in repeatedly demanding Republicans make changes to the bill. Trump advisor Elon Musk, now listed as the world's richest man, also used his social platform to primary both Republicans and Democrats who vote against Trump's wishes.

Inauguration Day is Jan. 20, 2025.




Top 10 Ag Stories of 2024: No. 4

Farmland Market's Resilience Shines in Face of Interest Rate, Farm Income Concerns


MT. JULIET, Tenn. (DTN) -- The U.S. farmland market's resilience was on full display in 2024. Farmland values climbed 5% on average, according to USDA, and even though no-sales made a return to the auction block, sales of large and iconic properties drew plenty of attention.

Bruce Sherrick, director of the TIAA Center for Farmland Research at the University of Illinois, said farmland values have mostly grown in a slow, steady manner since the 1930s. There have been a few periods of price spikes but only 10 or so years when prices declined, including the 1980s farm crisis.

"Farmland as an investment has outperformed equities over the long run and provides better inflation protection," Sherrick said. Unlike equities, the supply of land is fixed, and how much comes on the market at any time is determined primarily by nonmarket factors, such as estate transitions.

Farmers took a notable step back from the buy side 2024, generally opting to preserve working capital unless it was the perfect piece of property. Overall, U.S. net farm income declined 4% from 2023, with strength in the livestock sector offsetting crippling pain on the grain side. Cash receipts for corn and soybeans are expected to fall 21% and 12% respectively from last year, accounting for nearly all of the decline in crop receipts.

Investors, sensing bargains, stepped up.

"Investors provide price insulation in downturns," said Howard Halderman, the third-generation president of Halderman Real Estate and Farm Management, based in Wabash, Indiana. Investors typically target properties with income potential of 3% to 4% or more, Halderman said. At present, cash rents compared to many Corn Belt land values put the cap rate around 2.5%.

No-sales started popping up at auctions last spring, which occur when bidding doesn't reach a buyer's reserve price, and they became more common in the fall. The fall auction season was busy, and more inventory on the market contributed to some weaker sales prices in some regions.

Dough Hensley, president of real estate services at Hertz Farm Management, told DTN last spring that he expected the farmland market to continue to become more localized, with pockets of over- and under-supply driving prices.

In one week, last spring, several auctions resulted in no-sales while another came only $400 shy of an Iowa record.

"When something comes up in one of those really tightly held areas, even if all the economic factors are saying it should be weaker, you may have a strong sale for a nice 80 (acres) or quarter section because it's hard to buy in certain neighborhoods."

Another trend of 2024 was big acreage deals:

-- The largest contiguous ranch in Kansas changed hands in January. The 44,923-acre P5 Ranch sold to Don Horton, founder of the nation's largest homebuilder, the publicly traded D.R. Horton, Inc., for an undisclosed amount.

-- The Mormon church's real estate investment company, Farmland Reserve Inc, purchased 44 farms in 8 states totaling 41,554 acres from Farmland Partners, Inc., a publicly traded real estate investment trust. The farms are located across Arkansas, Florida, Louisiana, Mississippi, Nebraska, Oklahoma and the Carolinas. The Church of Jesus Christ of Latter-day Saints paid $289 million in cash, an average $6,955 per acre, in October.

-- During the summer, 26,206 contiguous acres west of the Missouri River in South Dakota sold for $31 million, or $1,183 per acre or $1350 per tillable acre. In addition to a full set of buildings, the property included a private grain elevator with rail-loading access and 1.5 million bushels of storage.



Top 10 Ag Stories of 2024: No. 5

H5N1 Detected in Dairy Cattle for the First Time


REDFIELD, Iowa (DTN) -- Highly pathogenic avian influenza (HPAI) has been in the poultry industry for a few years, but in March, the virus jumped to dairy cows and spread across the country, causing a decrease in milk production and illness in affected cows. The dairy strain was identified as H5N1.

Cows were tested for HPAI in March when a mysterious illness slowed their milk production and showed mastitis-like symptoms; veterinarians were baffled as to how a virus affecting poultry could jump to a mammal, but it did.

Confirmation of the illness has led to extensive research of the virus.

With birds being the source of the virus to cows, animal health professionals originally suggested keeping birds away from where cows are located. Migratory birds continue to be the source of spreading avian influenza among poultry facilities across the country. While the exact way the virus spread hasn't completely been identified, it seems to have spread early by farms that were the source of dairy breeding stock to other farms.

The herd in Texas was blamed for some of the spread, although it hasn't been certainly confirmed. The Texas Animal Health Commission responded, "The TAHC, USDA, and other federal, state, university, and industry partners and subject matter experts are all actively working to collect and share epidemiology information, discuss diagnostic information updates, and work together to further characterize the full scope of the incident."

VIRUS AFFECTS ANIMALS DIFFERENTLY

HPAI is considered lethal in birds, and the facilities are depopulated. The dairy cows affected by the later identified HPAI H5N1 clade 2.3.4.4b, genotype B3.13 show symptoms of a drop in milk production, loss of appetite and changes in manure consistency. Cows should be sorted into the sick pen to be treated with fluids and any other medicine prescribed by the herd veterinarian.

Producers report the decrease in milk production and say some cows will quit producing milk. According to the American Veterinary Medical Association, there has been a low mortality/culling rate of 2% or less, although California has seen a higher percentage than other states.

Testing of lactating dairy cows going to expositions and fairs or being transported across state lines began midsummer to help prevent the spread of the virus by live animals. This testing and concern led to fewer dairy cows being exhibited at summer fairs.

Jamie Jonker, chief science officer for the National Milk Producers Federation, said there continues to be no concern about the safety of the milk supply or that this circumstance poses a risk to consumer health because products are pasteurized before entering the market, per the Food and Drug Administration.

"Pasteurization has continually proven to inactivate bacteria and viruses, including influenza in milk," he said. "All dairy cattle are also subject to the Federal Meat Inspection Act and must be slaughtered and processed under inspection by USDA's Food Safety and Inspection Service, ensuring that all meat entering the food supply has been inspected and approved for human consumption."

FURTHER TESTING TO FIND VIRUS

Currently, testing is being conducted on Grade A milk intended for pasteurization as part of the National Milk Testing Strategy. Tests will be done at milk plants to find any problems in herds that haven't yet seen the virus. Patrick Gorden is a professor at Iowa State University's College of Veterinary Medicine who specializes in dairy production medicine and has been involved with the team that developed the national milk testing strategy.

"This testing strategy will allow us to determine individual state status with the goal of having freedom of H5N1 in the U.S. dairy population," he said. "I think dairy producers can control their own destiny. They need to make sure biosecurity is in place on farms to protect against this virus."

In addition to the virus affecting dairy cows, it has been found in pigs and goats, which have been on farms where cases were also present in cattle and/or poultry.

More concerning is the number of cases found in humans, usually workers at dairy farms. Human cases started back in April and led to the recommendation of more personal protective equipment for these workers. Federal funding is available for dairy farms to afford the proper safety equipment and biosecurity on the operations.

The Center for Disease Control (CDC) has suggested farmworkers get the flu vaccine to reduce the risk of "co-infection" of seasonal flu viruses with the H5N1 virus. Livestock workers are at risk of infection from seasonal flu just like anyone else, but they are also at risk of exposure to H5N1 from infected livestock.

Such dual infections are rare but could potentially lead to an exchange of genetic material between the two viruses. More recently, the cases among humans have been more severe and led to hospitalization.

As of Dec. 24, H5N1 confirmed cases in dairy cows since the outbreak began total 880 cases in 16 states. In the past 30 days, there has been an increase in HPAI cases in poultry due to the seasonal migration of wild birds. Since Nov. 23, 101 flocks have been tested and were confirmed to have HPAI, with 14.52 million birds affected. According to the CDC, since April, there have been a total of 61 reported human cases of bird flu in the U.S.




Top 10 Ag Stories of 2024: No. 6

Active Weather Pattern's Massive Impact: Megafires to Flooded Fields, Flash Drought to Hurricane Fatalities



OMAHA (DTN) -- When it comes to describing the weather impact in 2024, it isn't one extreme event that stood out to make No. 6 on DTN's countdown.

"Honestly, the weather wasn't really all that extreme, ... (but) the impacts from it were massive in different parts of the country at different times of the year," noted DTN Ag Meteorologist John Baranick.

"Our weather pattern was so active that we just kept getting system after system roll through," he explained. They weren't big outbreaks for the most part, but it was kind of "nickel-and-dimed" through the season, he said.

Depending on where you live, you may have experienced some of the events that stood out. These included wildfires in the United States and Canada, flooding in the Midwest, derechos in the Corn Belt and other areas, a late-season flash drought, and hurricanes that could be both beneficial and very destructive.

But Baranick stressed that, thanks to a delayed La Nina pattern in 2024, a lot of the Corn Belt ended up with pretty good weather, "until you got to the very end, tail end of the season, when we were finishing up fall (harvest) and just took a couple of bushels off the top. But other than that, ... it was really good weather for most of the year for planting all the way to harvest. Harvest weather was great. And you're talking about the Corn Belt, or outside of Corn Belt to ... honestly, everywhere."

However, he did add that one area had a few challenges: "It was in the Southeast where they had weeks of drought, then weeks of heavy rain, then weeks of drought and then hurricanes."

LARGEST EVER TEXAS WILDFIRE

From December 2023 through March was a super El Nino, with limited precipitation in the dry Western Corn Belt at the start of the year 

However, El Nino-related precipitation increased vegetation growth in the Southern Plains and provided fuel for a megafire that caught national attention. The record-breaking Smokehouse Creek Fire in the northeastern Texas Panhandle and western Oklahoma started in late February and burned more than 1 million acres -- more than 1,500 square miles -- and became the largest in Texas history and even one of the largest fires in U.S. history.

Texas farmers and ranchers shared with DTN how it was the worst fire they saw in their lifetimes as it affected their pastures, killed thousands of cattle and other livestock, and destroyed their homes.

Weather conditions influenced other wildfires to break out in late winter into spring in United States and Canada, including some evacuations of people in various communities, and affected air quality in both countries.

By near the end of 2024, more than 13 million acres had burned in Canada and 8.6 million acres in the U.S.

HEAVY RAINS

Spring saw some heavy rains, such as those in April that triggered floods in Missouri, Kansas, Illinois and as far south as eastern Texas and southwest Louisiana. This led to some planting delays.

But for those farmers in South Dakota, southern Minnesota and northwest Iowa, June brought heavy rains that hit the crops they already had in the ground.

"It was in late June, so people had already planted, and it just kind of washed everything out," said Baranick.

Some areas got 12-18 inches of rain in two days, which caused flooding, saturated soil and standing water to areas that had moderate to severe drought a year before. 

Asked what he thought was one of the most influential weather events of the year on crop production, Baranick pointed to the flooding. "I think it was probably the flooding in the Midwest, in terms of corn and soybean production, just because it wiped out very fertile areas of the country. And it was significant. I mean, driving through there was pretty remarkable, seeing all the variability in crop development and people that weren't able to plow anything over ... It was all drowned out. And then some areas where it was a mix of really, really short yellow corn, and move 100 yards, and it looks fantastic. And then other areas that, you know, look amazing. So, I mean the variability in that part of the country was kind of the worst of it all."

BILLION-DOLLAR WEATHER DISASTERS

But even before those heavy June rains, it was already becoming a costly year for weather disasters.

As DTN Ag Meteorologist Emeritus Bryce Anderson noted on June 12 in a blog, "The first five months already stands at 11 $1-billion disasters. That five-month total is higher than many annual totals since $1 billion weather and climate disaster tracking began in 1980 ... For more perspective, the year 2024 already has more $1-billion confirmed weather and climate disasters than each of the entire years from 1980-1997."

The billion-dollar events included "two tornado events that affected the central, southern and eastern U.S. at the end of April and beginning of May; one severe weather event that hit the central and eastern U.S. at the end of February; and a derecho event that affected portions of the South in mid-May."

Baranick noted in a blog in late May how much the severe weather was ahead of the average pace: "More than 1,000 tornadoes have been reported to the Storm Prediction Center (SPC) as of May 27. That is more than the 731 that have occurred on average over the last 15 years," he wrote.

According to the National Center for Environmental Information, by the end of November, there was a preliminary report of 1,762 tornadoes in the U.S., "which is among the highest tornado counts on record for the same January-November period. Only 2011, 2008 and 2004 have a similar high count of tornadoes."

HIGH WINDS AND DERECHOS

Many American farmers and ranchers may have noticed a lot more cases than usual of severe wind during the past year.

Baranick said, in his June blog, "Hail reports are only slightly above average with 3,142 reports for 2024 compared to 2,790 over the last 15 years. But wind reports have really skyrocketed during May and are well ahead of the 15-year average of 4,160 with a total of 5,899. This puts 2024 on pace for the second-highest severe weather reports over the last 15 years."

Baranick wrote more about the wind and derechos: "Though the case for the hurricane-force wind gusts may not make this a true derecho, a line of storms that formed in Oklahoma and Missouri on April 1 continued through the Ohio Valley on April 2. In addition to widespread wind damage, more than 100 tornadoes were reported, though some of these were in storms away from the derecho. Another derecho developed May 16-17 across Texas and Louisiana that caused widespread damage in downtown Houston with several reports over 100 miles per hour."

The heart of the Corn Belt got hit with another derecho -- and also large hail in places -- in mid-July, from Iowa through northern Illinois, southern Wisconsin and northern Indiana -- just as crops were entering the critical stages of silking and setting pods.

However, the July 2024 derecho was not as destructive to crops as the August 2020 derecho, explained Baranick in one of his blogs, even though it hit some of the same areas. 

In an interview in late December, Baranick admitted he thought there was going to be more crop damage. "I was thinking it was going to be a bit more extensive once the combines started rolling, but those areas ended up with some pretty good yields," he said. "It pushed over corn, (there were) some ripped-up leaves on soybeans, for sure, but it was in July instead of August, so ... the corn crop just righted itself for the most part." He added the derecho also brought some much-needed rain at the right time: corn pollination time.

HURRICANES HIT U.S.

2024 stands out for the hurricanes that hit the country. In July, Hurricane Beryl's remnants brought rain into the Mississippi Valley and the Eastern Corn Belt. It made landfall as a Category 1 hurricane near Matagorda, Texas.

In August, Hurricane Debby landed as a Category 1 storm in the Big Bend area of Florida, then moved up through the Carolinas and East Coast with a massive amount of rain and flooding, including in southeast Georgia.

September saw more hurricanes. Early in the month, Hurricane Francine made landfall in Louisiana as a Category 2 storm, bringing heavy rainfall to the Southern Delta just as the cotton harvest was around the corner and soybeans were dropping their leaves. Francine also temporarily affected Gulf of Mexico exports and the offshore oil and gas industry. 

Perhaps the one that stood out the most, however, was powerful Category 4 Hurricane Helene slamming into Florida's Big Bend region near the end of September.

"Along with damage in Florida and Georgia, the storm also devastated western North Carolina and eastern Tennessee. Some areas of North Carolina saw as much as 29 inches of rain," reported DTN Ag Policy Editor Chris Clayton, who added that presidential disaster declarations were already approved for Florida, North Carolina and Virginia by Sept. 30.

Helene hit hard the livestock industry and crops such as peanuts, cotton and soybeans.

There was widespread damage across the Southeast, with even early estimated damage reports at $15 billion across the region.

The estimates have continued to rise in the months that followed. In mid-December, North Carolina Gov. Roy Cooper released a report that Hurricane Helene recovery -- for damage and needs -- will cost his state $59.6 billion. 

"The estimated economic impact of Hurricane Helene on the agricultural community is $4.9 billion. The direct damage and needs estimate is $4.1 billion, comprising farm infrastructure, machinery, and equipment damage; crop, forestry, and trout farm losses; stream debris removal and stabilization needs, agricultural land restoration needs; wildfire risk response, and mitigation efforts. Livestock, dairy, and poultry producers experienced significant infrastructure damage but limited animal losses. There is an estimated additional $783 million in indirect and induced impacts from crop losses," Cooper's report stated.

Cooper's report showed it will take time and be challenging in the months ahead to recover: "Hay land, often in valleys, was destroyed along with stored hay in these areas. Cattle farmers now face chronic shortages of hay just as they are beginning the winter feeding season. Beyond the immediate production losses, for the agricultural community to recover, significant remediation efforts are needed to restore farmland and pasture and forestland from the effects of high winds, landslides, extreme erosion, sediment deposits, and stream redirection."

Unfortunately, Helene wouldn't be the last of the hurricanes in 2024. It was followed by Hurricane Isaac, Leslie and Milton in the weeks that followed.

In fact, NOAA said in a news release Nov. 25 that there were seven hurricanes that formed since Sept. 25 in the Atlantic Ocean: "The most on record for this period." 

By the time the Atlantic hurricane season ended at the end of November, there were 18 named storms, with 11 of them becoming hurricanes and five were major hurricanes; five of the hurricanes landed in the U.S., with two as major hurricanes, according to NOAA.

NOAA listed some of the records the hurricanes set:

-- "Hurricane Beryl was the earliest Atlantic basin Category-5 hurricane on record."

-- "Helene was the deadliest hurricane to affect the continental U.S. since Katrina in 2005, with more than 150 direct fatalities, the majority of which occurred in North Carolina and South Carolina."

-- "Hurricane Milton made landfall as a Category-3 (storm) near Siesta Key, Florida, on Oct. 9 and resulted in a tornado outbreak that produced 46 tornadoes and caused torrential rainfall and localized flooding with total rainfall amounts of 10-15 inches (and higher) ... Milton's rate of rapid intensification was among the highest ever observed, with a 90-mile-per-hour increase in wind speed during the 24-hour period from early Oct. 6 to early Oct. 7." Milton hit livestock producers and citrus growers, as well as other crops.

LATE-SEASON FLASH DROUGHT

Grazing areas, winter wheat, and the final stages of filling in the Corn Belt were affected by late-season flash drought, Baranick said in his year-end interview.

"It went dry late summer and through ... most of August, September and October, out there in the Plains. So, it was an extended period of dry conditions -- great for harvest, but not for building forages or planting winter wheat."

He went on. "Luckily, that was reversed in November, when we got a whole bunch of rain outside of Nebraska. Nebraska didn't get it, but the Southwestern Plains -- Kansas, Oklahoma, Texas, Colorado, New Mexico -- all those areas ended up with some really, really good soil moisture that kind of turned that (wheat crop) around."

DROUGHT CONTINUES

Baranick said a more active pattern in the fall has helped bring some moisture to the Ohio Valley.

But some of the areas that had the worst drought in 2024 have unfortunately not gotten the precipitation they need. This includes Nebraska, the Dakotas, Wyoming and Montana.

"This core area of cattle country has not done well with the active pattern," he said. "A lot of the systems have been kind of going off, either to their north or to the south, and they've kind of gotten left out in there. Iowa has been OK. There's still some leftover drought in there, but for the most part, it's kind of northern Nebraska, and especially northwestern Nebraska through almost all of Wyoming, much of South Dakota and western North Dakota into eastern Montana," he said.

"That's kind of the area that we're kind of watching to be an issue for 2025 because it's not an area that certainly sees a lot of moisture over the winter or the spring."



Thursday, December 26, 2024

This Week's Drought Summary (12/26)

A swath of precipitation (0.5 to 1.5 inches) this past week led to small improvements from parts of Oklahoma and Arkansas northeastward to the Central Appalachians. Since the major drought that affected the Central Appalachians and Upper Ohio Valley peaked in late September, drought has steadily improved across these areas the past two months. Near to above-normal precipitation during the past 30 days supported drought improvement across parts of the Northeast. Farther to the south across the Southeast, Lower Mississippi Valley, and Texas, 30 to 60-day precipitation deficits continue to increase with expanding and intensifying drought during mid to late December. December is typically a drier time of year for the Upper Midwest and Northern to Central Great Plains where little to no weekly drought change was warranted. Since the beginning of October, precipitation has generally averaged below normal across the Central Rockies, Great Basin, Southwest, and southern California. From December 17-23, enhanced onshore flow resulted in wetter-than-normal conditions across coastal northwestern California and much of the Pacific Northwest. 7-day temperatures, ending on December 23, averaged above normal throughout the West and Central to Southern Great Plains with colder-than-normal temperatures limited to the Great Lakes and Northeast.



Northeast

A one-category improvement was made to portions of western Maryland and West Virginia which received near one inch of precipitation this past week. Following the major drought that began in July and peaked later in September, frequent precipitation along with seasonably cooler temperatures have led to continued drought improvement across the Central Appalachians. Eastern Massachusetts and Rhode Island also benefited from recent precipitation and a one-category improvement was made to this region, closely following guidance from the NDMC short-term drought blend and 90-day SPI. Although precipitation was lighter (0.5 inch or less, liquid equivalent) this past week across Connecticut, southeastern New Hampshire, New Jersey, New York, Pennsylvania, and northeastern Maryland, a reassessment of SPIs at various time scales and lack of ground impacts led to a one-category improvement for portions of these states.

Southeast

Recent precipitation (near one inch) resulted in a slight reduction in abnormal dryness (D0) across southwestern Virginia. A dry week and 60-day precipitation deficits of more than 4 inches supported an expansion of moderate drought (D1) eastward across central Alabama. Increasing 30 to 60-day precipitation deficits led to a 1-category degradation in portions of Georgia and bordering areas of South Carolina. Increasing 60-day precipitation deficits of more than 4 inches led to the addition of short-term moderate drought to portions of south Florida. In addition, soil moisture and 28-day streamflows are beginning to fall below the 20th percentile across the Atlantic coastal areas of south Florida.

South

Based on increasing short-term precipitation deficits and 30 to 90-day SPIs, abnormal dryness (D0) and moderate drought (D1) were expanded across northern Louisiana and portions of south-central Mississippi. These same indicators along with the NDMC short-term blend supported the expansion of D1 to severe drought (D2) across portions of eastern and southern Texas. Around one inch of precipitation supported a 1-category improvement across portions of Arkansas and central to southeastern Oklahoma. Recent precipitation also led to improvement across northern Tennessee to be consistent with bordering areas of southeastern Kentucky.

Midwest

Near one inch of precipitation resulted in a 1-category improvement to southeastern Kentucky. Elsewhere across ongoing drought areas of the Midwest, precipitation was light (0.5 inch or less, liquid equivalent) and no change was needed in Dx categories. Severe drought (D2) continues to be designated for northern Indiana, eastern Ohio, and northern portions of the lower peninsula of Michigan.

High Plains

Based on SPIs at various time scales, low snowpack, and the NDMC short-term blend, a 1-category degradation was made to northern Colorado along with southern and northwestern Wyoming. Snow water equivalent amounts are below the 5th percentile where extreme drought (D3) was expanded in Wyoming. These same indicators justified an expansion of abnormal dryness (D0) across southwestern Colorado. Severe drought (D2) was expanded across western Nebraska due to soil moisture percentiles falling below the 10th percentile and support from the 90 to 120-day SPI.



West

Based on increasing water year to date (WYTD: October 1-December 23) precipitation deficits, a 1-category degradation was warranted for central Nevada. For this same reason, moderate drought (D1) was added to portions of northeastern Nevada. Elsewhere, no other changes were made. WYTD precipitation was at or above-normal for much of the Pacific Northwest and northern California and below-normal for the remainder of the West region. As of December 23, snow water equivalent (SWE) was below-normal across the Northern Rockies of Montana and Wasatch Mountains of Utah. SWE was near average for the Sierra Nevada Mountains and highly variable throughout the Cascades.



Pacific

Puerto Rico remains drought-free with 90-day precipitation averaging above normal and most 28-day average streamflows between the 25th and 75th percentile.

Troughs, the remnants of cold fronts, and disturbances in the easterly trade-wind flow brought pulses of showers to the U.S. Virgin Islands (USVI) during this U.S. Drought Monitor (USDM) week (December 18-24). Weekly rainfall totals exceeded an inch at many locations on all three islands. Groundwater levels held steady on St. John and St. Thomas, while the groundwater level on St. Croix rose slightly, and the groundwater levels remained high compared to the recent historical record. Satellite observations of vegetative health did not indicate any stressed vegetation. Based on this data, no drought or abnormal dryness continued across all three islands.

No changes were made to drought coverage and intensity across Hawaii this past week. Drought coverage remains widespread throughout Maui, Lanai, Molokai, Oahu, and Kauai.

Seasonal trade winds continued to characterize the weather over the U.S.-Affiliated Pacific Islands (USAPI) during this U.S. Drought Monitor (USDM) week (December 18-24). Dry weather is usually associated with trade winds, and the week was dry (below the weekly minimum needed to meet most water needs) at several locations in the Federated States of Micronesia (FSM) and northern Marshall Islands. But disturbances moving in the trade-wind flow combined with the Inter-Tropical Convergence Zone (ITC) to bring several inches of rain to the southern Marshalls, Republic of Palau, and parts of the FSM and Marianas. A trough of low pressure brought periods of heavy rain to American Samoa.

In general, December has been wet in the Marianas, Palau, American Samoa, most of the Marshalls, and parts of the FSM. But some parts of the USAPI have missed out on the rain, with monthly totals below the monthly minimum required to meet most water needs. Recent dry weeks (below the weekly minimum) combined with the dry month resulted in abnormally dry or moderate drought classifications for a few islands. These include Kwajalein and Wotje (in the Marshalls) and Saipan (in the Marianas), which are abnormally dry (D0-S), and Yap (in the FSM), which is in moderate drought (D1-S).

The last four weeks have each been dry at Yap, with a December 1-22 monthly total of 1.79 inches of rain. The driest December in the 74-year record occurred in 1990 with a monthly total of 2.22 inches. The persistent dry conditions in December 2024 resulted in the initiation of moderate drought at Yap.

Abnormal dryness continued at Saipan, where the week was dry at the airport station and the monthly total rainfall was 2.99 inches, which is below the monthly minimum. The monthly total is below the monthly minimum at Kwajalein and Wotje, and this week marked the third consecutive dry week, which is the criterion for initiation of D0-S.

No analysis could be made for Fananu, Mili, Ulithi, Utirik, or Woleai due to missing data. The rest of the locations continued free of drought and abnormal dryness because the month has been wet or the dryness has not lasted long enough to trigger D0.

Caribbean

Alaska remains drought-free although snow water equivalent values were running below normal for the Kenai Peninsula and near Anchorage.

Looking Ahead

During late December, multiple low pressure systems will bring heavy precipitation (rain and high-elevation snow) to the Pacific Northwest and northern California. On December 27, widespread rain with locally heavy amounts (more than 2 inches) is forecast for eastern Oklahoma, eastern Texas, and Arkansas. A slow-moving low pressure system and trailing front are forecast to bring varying precipitation amounts (0.5 to 1.5 inches) to the Ohio and Tennessee Valleys, Mid-Atlantic, and Northeast.

The Climate Prediction Center’s 6-10 day outlook (valid December 30, 2024-January 3, 2025) favors above-normal temperatures across the East, Southern Great Plains, and Southwest. Near normal temperatures are favored for the Northern Great Plains, Northern Rockies, and Pacific Northwest as above-normal temperatures are forecast to moderate during this 5-day period. A pattern change is forecast during the first week of the New Year with a transition towards near or below-normal temperatures for much of the lower 48 states. Elevated above-normal precipitation probabilities are forecast for the Pacific Northwest, Great Plains, Midwest, and Northeast. Below-normal precipitation is more likely for the southern two-thirds of California and the Southwest.




Monday, December 23, 2024

Top 10 Ag Stories of 2024: No. 7

EPA Advanced Plans in 2024 to Meet Endangered Species Obligations for Pesticides


JEFFERSON CITY, Mo. (DTN) -- What will be the added cost of protecting threatened and endangered species from agricultural pesticides in the future? The answer that farmers received from EPA this past year was "It depends."

In 2024, the federal agency published the final versions of two plans and the draft of a third that are intended to guide actions to protect listed species and areas deemed as "critical habitat." The overall goal for EPA is to ensure that when it registers and reregisters pesticides under the Federal Insecticide, Fungicide and Rodenticide Act, it also meets its obligations under the Endangered Species Act -- something the agency has admittedly overlooked for decades and has been sued over incessantly.

PROTECTING ENDANGERED PLANTS

Chief among these plans is the long-awaited Final Herbicide Strategy, which was released in August, some 13 months after a draft strategy was made public. The strategy calls for identifying protections for species earlier in the pesticide review process, implementing spray drift buffers and "mitigation measures" intended to reduce herbicide exposure through runoff or soil erosion.

Under the strategy, the level of mitigation required will be determined by the potential of a herbicide to negatively affect listed species at the population level. The higher the potential, the more mitigation required. The more mitigation required, the higher the cost to farmers to comply.

EPA assigned point values to an entire menu of these measures, which include vegetative filter strips, grassed waterways, field borders, cover crops and more. Farmers will choose from the menu to accumulate the total number of points required to apply an individual herbicide. EPA has determined that products not likely to affect a listed species require zero mitigation points. Those herbicides with low, medium and high potential to affect listed species require three, six or nine points of mitigation, respectively.

Those who farm in counties deemed to have low runoff vulnerability receive mitigation points just for farming in those regions; whereas those who farm in counties with high runoff vulnerability receive no points. EPA allots one mitigation point to farmers for simply "tracking" their mitigation efforts.

News of the strategy's release left farmers worried about the feasibility of the plan and its overall effects on farming. Josh Gackle, a soybean farmer from North Dakota and then-president of the American Soybean Association, acknowledged that while the final strategy was an improvement over the draft, concerns remained over the strategy's complexity, its affordability and whether these mitigation requirements were supported by the best available science, as required by law.

"As finalized, the Herbicide Strategy is likely to cost U.S. farmers billions of dollars to implement and could result in significant new hurdles to farmers accessing and using herbicides in the future," he said in an ASA statement.

In October, when EPA announced the registration of glufosinate-P, farmers got their first look at how the pesticide registration process might be affected by the Final Herbicide Strategy moving forward. While the proposed product label originally called for one point of mitigation, the final approved label required three points -- the amount of mitigation EPA deems necessary for a pesticide with low potential to affect listed species -- along with a change to mandatory downwind spray buffer distances. It remains to be seen how the strategy will influence registration of herbicides considered to have a high potential for adversely affecting endangered and threatened species.

OTHER PROTECTION PLANS

Roughly a month after releasing the Final Herbicide Strategy, EPA announced its Vulnerable Species Action Plan (VSAP) in late September, which is intended to protect 27 plant and animal species identified as imperiled or in danger of extinction from pesticides. The list included the Attwater's greater prairie chicken, native to the coasts of Texas and Louisiana; the Buena Vista Lake ornate shrew found in southern California; rusty patched bumblebees historically found in the eastern U.S. and upper Midwest; and five endangered plant species from Lake Wales Ridge in Florida.

Like the Final Herbicide Strategy, the VSAP includes mitigation measures to reduce common pesticide exposure routes, such spray drift and runoff, but it also addresses other routes, including on-field exposure and pesticide volatilization.

While the VSAP initially included only 27 of the nearly 1,700 plants and animals listed as threatened or endangered, EPA stated that the agency expects to add more species through a formal consultation with the U.S. Fish and Wildlife Services. The agency plans to release maps identifying species and their habitats in the coming months.

Also expected in the first months of 2025 is the Final Insecticide Strategy. EPA released a draft of the strategy for public comment in July 2024, and the agency is required by a settlement agreement to produce the final document by March 2025. Like the Herbicide Strategy before it, the Insecticide Strategy proposes spray drift buffers and mitigation measures to reduce the potential for insecticide exposure to more than 850 insect species listed as threatened or endangered.

It's unknown how this strategy may change from its draft to final versions or how a new administration will influence it and other strategies already in place.




This Week's Drought Summary (1/16)

On January 9 and 10, a low pressure system tracked along the Gulf Coast and resulted in widespread precipitation (1 to 2.5 inches, liquid eq...