Farmers Business Network surveyed its members, to gain a better understanding of the derecho’s impact on Iowa’s crop acres. The results indicated “centralized” damages, ranging from central to eastern Iowa, according to Kevin McNew, FBN chief economist.

“(In) about 15 counties across Iowa, farmers reported at least half or more of their corn acres were laid down. For farmers in that key strike zone, it’s a big impact,” McNew says. “When we think about market-level impact, we have a hard time finding a big enough area to make the case that the balance sheet is going to get worse.”

McNew admits, “There is a lot of ambiguity between now and harvest.” Early agronomic estimates put yield losses at 20-percent.

“Some of it will depend on weather,” McNew says. “If we get a lot of rain, that could create more problems for getting the crop out. If it’s dry and relatively stable, I don’t see a ton of problems. The agronomists I’ve talked to think we’re looking at a 20-percent yield loss. That’s certainly an off-the-cuff estimate, but the last half of the growing season will be something to watch.”

The damages go far beyond the field, adds McNew.

“Farmers are being hit by centralized impacts, and not only on the yield and crop losses themselves, but grain bin capacity took a substantial hit,” McNew says. “If there’s not enough grain bin space in these areas, that spells problems for local prices in particular.”

Story courtesy of the Iowa Agribusiness Radio Network.