August 20, 2007

Michigan farmers expect large losses in corn crop due to dry weather

While corn producers throughout much of the country are enjoying bumper crops this year, Michigan farmers are losing a lot of their corn to a long spell of dry weather.

The lack of rain also is hurting the state's soy output and that of other rains.

Since the traditional April 1 start of the growing season, some areas have gotten up to 25 percent less precipitation than normal, including corn-growing regions in southwestern, central and eastern parts of the state, according to researchers at Michigan State University. Some farmers expect to lose a third of the corn crop to dry conditions.

Ground conditions range from being abnormally dry to experiencing extreme drought, with virtually no region unaffected, according to the US Drought Monitor, a weekly national map of drought conditions.

Perhaps the biggest problem for Michigan's corn producers is the lack of rain that fell during July' pollination season, which hindered kernel development and will ultimately affect yields. Several days of steady rains would help Miller' parched soy plants but, at this point, wouldn't do much for his corn, he said.

Corn prices are up to 50 percent higher than a couple years ago thanks to the increased production of ethanol, which is used as a fuel additive. Michigan has four ethanol plants with a fifth set to open later this year.

Because of the increased demand, the USDA says American farmers are expected to produce their largest-ever corn crop in 2007. National production is forecast at 13.1 billion bushels, up 24 percent from last year and 11 percent higher than the previous record of 11.8 billion bushels set in 2004.

Michigan' farmers planted 2.5 million acres of corn this year, 14 percent more than in 2006, according to the USDA. Nearly all of it is field corn, which is used mostly as livestock feed but also is an ingredient in corn sweeteners and cereals as well as ethanol.

The state' corn output ranked 11th among states in 2006 at 288.1 million bushels and is likely to drop 14 percent this year to 247.5 million bushels.