US grains' value lost US$8 billion on extreme climates

US crops have lost more than US$8 billion in value this spring due to excessive rains in the Corn Belt and drought in the west, the American Farm Bureau Federation (AFBF) said Wednesday (June 25, 2008).

AFBF pointed out that the flooding in Iowa alone accounts for almost half or US$4-billion worth of the damage.

The total corn yield would likely decline 8-10 bushels per acre from the 2008 trend line, the bureau said.

US soy yield would drop to 40 bushels an acre, a two-bushel reduction from the USDA's current projection.

In addition to the crops Iowa's farmers did not plant due to water-logged soil, which are estimated at 1.5 million-2 million acres of corn and soy, the corn yield for the plants that are growing is expected to drop 16 percent this year, said Terry Francl, AFBF senior economist.

Other Corn Belt states have also watched their crop value wash away. The AFBF reported losses of Illinois at US$1.3 billion, Missouri at US$900 million, Indiana at US$500 million, Nebraska at US$500 million and US$1 billion for remaining wet states.

Meanwhile, farmers in northern California are struggling with the driest spring on record with drought damage totaled at US$500 million.

The damage estimates relate only to crop production as of the last week of June excluding livestock and infrastructure, the bureau clarified.