The 2019 planting season proved that American farmers would do whatever was needed to get a crop in.
Coming off a growing season riddled with springtime rain and dry summer conditions, which led to a late harvest, farmers are now adjusting to what it looks like as they navigate planting during a pandemic.
Despite recent rains, planting conditions have been favorable, though.
“As a general rule, the ground that we worked worked out pretty nice this spring,” Les Hoveln, a part-time farmer and Ag Lender at Gifford State Bank, said.
Hoveln reported some tillage issues and some concern over lack of very cold winter temperatures.
According to the USDA, 68-percent of Illinois’ corn has been planted in comparison to 11-percent at the same time last year (May 10). The same report shows that 43-percent of soybeans in Illinois have been planted, while in 2019 only 3-percent had been planted by mid-May.
“Over the last five years, we have seen that there are more and more farmers planting their soybeans first,” Hoveln said.
“There’s been some data that suggests that earlier planting beans have shown to yield better.”
The 2020 season will be unlike any spring or summer farmers have experienced before. Much of their seed was purchased prior to the COVID-19 outbreak, so they should have the seed, fertilizer or chemicals to get the work done.
Like other essential workers, farmers are going to do what needs to be done to grow corn and soybeans that produce the products both humans and livestock need.
“A farmer needs to do whatever the farmer needs to do to get their crop in the ground,” Hoveln said.
It’s the farmer mentality.
In Champaign County, COVID-19 hasn’t really affected the day-to-day operations of grain farms so far.
But the crisis has substantially affected grain prices.
As of May 5, corn futures sold at a local elevator at $3.04, which was a 26-cent reduction from the price on March 30, 2020. During the same time period, unsold corn that was harvested in 2019, dropped 34-cents from $3.29 to $2.95.
Soybean prices saw a similar trend, on March 30, old soybeans went for $8.72 while new soybeans were being sold for $8.34. By May 5, prices drop to $8.24 for the old crop and $8.06 for the new crop.
Hoveln said that prices are unlikely to rebound in the upcoming months.
More than likely, this will lead to farmers losing money, possibly $10s-of-thousands on the 2020 crop they are currently planting.
Overall global demand for Ag commodities have declined in recent years.
“This started over a year ago with the trade situations with China,” Hoveln said. “China plus other countries are just not buying enough, or as much of our commodities, which is creating a surplus.”
Decreased demand in the states, due to COVID-19, is likely to increase that supply.
Although grain prices have spiraled downward, Hoveln said farmers continue to do a tremendous job of producing.
Hoveln said Americans can help farmers and ranchers throughout the United States by continuing to consume the products they provide.
The federal government has also provided some relief through the Payment Protection Program, which has been a small help in some cases.
Like other businesses, though, payroll is only a small portion of expenses business owners incur. Hoveln said that over the years, farmers have done more with less, really being mindful of their operating expenses, but seed, fertilizer and chemical prices continue to rise.
Farmers and ranchers may see some relief from CFAP (Coronavirus Food Assistance Program), which allotted $19 billion into relief for the Ag industry, including $16 billion for farmers and ranchers in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted.
The money will also assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.
“Agriculture desperately needs it,” Hoveln said.
Hoveln said there is one thing that Americans can extend to farmers during this time.
“Those in the Agricultural business could also use everyone’s thoughts.”
