August 19, 2020

US$300 million to remove, replace or repair damaged grain bins in Iowa

Iowa's agriculture department said it would need US$300 million to remove, replace or repair more than 57 million bushels of commercial grain storage in the state, destroyed by the recent derecho storm, Reuters reported.

The derecho storm on August 10 added more problems to the agricultural economy in the United States, which has been affected by extreme weather in the country, the US - China trade war and labour issues caused by the COVID-19 pandemic.

US President Donald Trump visited Iowa to attend a briefing with local and federal officials regarding the damage to crops after approving federal aid to the state.

The officials said Iowa could tap on reserves to fulfill orders from China and other countries. Iowa is a major corn producer in the US.

Mike Naig, Iowa's agriculture secretary said at the briefing that millions of acres of corn cannot be harvested.

The state agriculture department said 57 million bushels of commercial grain storage capacity in Iowa and on farms have been destroyed or seriously damaged by the storm. Farmers are finding it difficult to store crops.

The department said it will cost more than US$300 million to remove, replace or repair damaged grain bins.

In 2019, 2.6 billion bushels of corn and 502 million bushels of soybean were harvested.

-      Reuters