Agroinsurance

Thailand - Thai Economy Hit Hard by Drought

Thailand is experiencing the worst drought in half a century and it has already caused a loss of Bt68.14 billion (US$2 billion) to the economy, according to a survey by the University of the Thai Chamber of Commerce (UTCC).“From a previous growth projection of 3% to 3.5%, the Thai economy might expand by less than 3%,” said Thanavath Phonvichai, director of the UTCC’s Economic and Business Forecasting Centre.A survey of 1,200 farmers found that more than 92.2% of them had been hit by the drought. Only 7.8 percent, mostly in the South of Thailand, have been unaffected.Especially the rice harvest — one of the country’s top exports — has been severely affected. Around 4 million acres of rice farmland have been damaged, amounting to 15% of the total farmland in the country.Desperate for WaterThe wet season is under way, but Thailand is contending with drought conditions in seven out of 67 provinces, according to the National Disaster Warning Center. Water rationing is taking place in almost a third of the country — levels of some of the main reservoirs are at their lowest levels in 20 years.To the untrained eye, Thailand’s drought is deceptive. Across much of Suphanburi province, just north of Bangkok, many fields seem green and crop-filled.“[But] the colour is wrong, too yellow” explains Samien Hongto, the spry 72-year-old chairman of the Central Farmers Network as he surveys rice fields close to his village.We can see the severity of the drought in the central province of Suphan Buri, 103 km from Bangkok, where farmers are fighting over the Tharakam canal. The canal is the last resort of hope to the farmers with all their crops dying.This canal has pitted locals against each other with villagers upstream of hoarding its precious water to save their crops. Government requests to stop unauthorized pumping of canals are unrealistic and water rationing is unsustainable, farmers say.To help farmers, officials are trying to clear irrigation channels, dig more ground wells and use cloud seeding technology to create artificial rainfall.Rain is forecasted in drought-hit regions by August. With debt problems rising, it is still unclear whether many farmers can survive that long.Political ImplicationsWith Thailand’s vital rice belt being battered, the already weak economy suffering, and impoverished farmers forced deeper into debt, the junta’s Achilles heel has been revealed.In May 2014, Thailand’s generals promised to restore order and prosperity after months of street protests brought the economy to a near standstill.By severely curtailing civil liberties calm has been renewed. But the economy is still in a rut.Post-coup gains of a rebound in tourism and increased fiscal spending have been offset by disappointing exports, declining manufacturing and weak local demand.So a poor rice harvest is more than just an economic headache for the junta – it is a political dilemma.This is especially the case, as most of Thailand’s rice farmers hail from the country’s populous north where love for the ousted Shinawatras remains strong — in 2011, the government of then-Prime Minister Yingluck Shinawatra, bought rice from farmers at above-market prices which despite its popularity among rice farmers, backfired and brought the economy to a near stand-still.But the failed crop harvests also erodes crucial support among some of the military’s natural allies because it only adds to an already negative outlook on the economy.The dictatorship is extremely vulnerable to economic downturns because such issues could lose the junta support from Bangkok-centered middle and upper classes, the only groups in Thailand supporting the junta.Source -http://www.investasian.com

USA - South Florida’s drought deepens

Eastern Miami-Dade and Broward counties have fallen into extreme drought conditions, water managers warned Thursday.One measure of the severity: about 85 percent of Miami-Dade’s groundwater monitoring wells are at their lowest levels in a century, according to the U.S. Geological Survey.Salinity in Biscayne Bay and Florida Bay continues to climb and severe and moderate conditions stretch west and north to Collier and Palm Beach counties. And the weather forecast promises little relief: below normal rainfall is expected in July.If this year’s feeble rainy season continues, South Florida’s drinking water supply in the Biscayne Aquifer could be threatened by seawater pushing in underground from the coast.“For us, it’s an indicator to start monitoring the saltwater intrusion line,” said South Florida Water Management District operations director Jeff Kivett.The district could order local utilities to try to cut back use to protect regional wellfields if conditions worsen, Kivett said. For now, the district is urging residents in Miami-Dade and Broward to adhere to oft-ignored year-round restrictions that limit lawn watering to twice a week.South Florida’s rainy season typically kicks in around June with the start of the hurricane season. But this year, following a dry spring, just over six inches has fallen across a 16-county region, more than two inches below average. July arrived with brutal heat, but little seasonal afternoon rain. Rainfall in Broward was off by more than eight inches. Miami-Dade was down seven inches.Water managers are also wrestling with low water levels in Lake Okeechobee, which this week slipped below 12 feet.In recent months, the district moved about 228 billion gallons from the lake south to test massive stormwater treatment areas as part of its Everglades restoration efforts and to avoid polluting the St. Lucie and Caloosahatchee rivers. In the spring, the lake is frequently lowered in anticipation of the rainy season and to protect its aging dike. The releases lowered the lake by about about two feet.But because of restrictions on water quality, much of that water didn’t go where it was most needed in the southern Everglades. As a result, environmental conditions have worsened. Wetlands near Cape Sable have dried out and salt levels in the bays have climbed steadily above levels considered healthy for marine life.“There’s just no water to be moved through the system,” Terrie Bates, the district’s chief of water resources, told the governing board at its monthly meeting Thursday.Former board member Mike Collins warned conditions in Florida Bay are at their worst in years and “a precursor for some type of disaster.”South Florida has always seen periodic droughts. But severe conditions can have dire consequences. In the 1990s, acres of seagrass in Florida Bay wilted after a drought, followed by a massive toxic algae bloom that left the bay sick for years. Already this year, researchers have warned that they are seeing fewer smaller prey fish in Florida Bay.Balancing the ups and downs of the wet and dry seasons with the needs for flood control, water use and environmental conservation in South Florida can also have huge economic consequences. Case in point: a pumping permit needed to move water from Lake Okeechobee when levels fall too low that set off a ruckus Thursday.James Nutt, an attorney with the district, said the U.S. Army Corps of Engineers is refusing to budge on a decision to revise permit requirements on the pumps which include stricter guidelines to protect habitat for endangered snail kites that nest around the lake.Board member James Moran called the move “clearly an over-reach of the sovereign rights of Florida,” while Everglades Law Center attorney Lisa Interlandi defended the authority of federal regulators.The board authorized the staff to appeal the Corps decision if the permit is denied in August and sue if necessary.“The last time we had drought conditions and weren’t able to use pumps the farmers in [the Everglades Agricultural Area] suffered over ... $100 million in crop losses,” Moran fumed.In other action, the board also voted 6-2 to maintain its tax rate next year — $38.42 for every $100,000 in taxable value in Southeast Florida — rejecting a recommendation from staff to roll back the rate needed to cover its $720 million budget.The decision, if approved, will mean that most homeowners will likely pay more. But without maintaining the rate, the majority of board members worried a staff plan to dip into reserves to cover deficits would leave the district ill-prepared to deal with hurricanes or continue Everglades restoration work. The decision, which faces two public hearings in September, is the first time in five years the district has voted to maintain its rate and not cut taxes.“We’ve proven we can run lean and mean and we’re good stewards of the people’s taxpayer money,” said board member Sandy Batchelor. “But we need to be forward thinking.”Source - http://www.miamiherald.com

USA - Drought Kills Wheat Crops in North Idaho

The drought is killing wheat crops in a northern Idaho county where commissioners declared a state of emergency.The Lewiston Tribune reports some Clearwater County farmers have seen drought conditions eliminate almost two-thirds of this year’s crops. Commission Chairman Don Ebert says recent rains were too late to save wheat crops, and that harvests are down 40 percent. The National Weather Service forecasts more rain this week, but not enough to end drought conditions.Experts at Washington State University say rain could mean more damage to wheat sprouts. Karel Wemhoff is the Farm Services Agency executive director for Lewis and Clearwater counties. She says loss estimates are based on what farmers are seeing. She said yield and probably quality will be affected. Surrounding counties are considering similar emergency declarations.Source -http://newsradio1310.com

El Niño Causes Excessive Rains in South America, Drought in Southeast Asia

El Niño, a phenomenon in which equatorial water temperatures rise in the Pacific, is threatening to aggravate the drought situation in southeast Asia, even as excessive rain lash parts of South America.Experts warn the drought caused by El Niño in the Asian region during the first half of the year could last for several more months, with disastrous consequences.Thailand anticipates a reduction of 0.52 percent in its GDP this year, owing to a smaller harvest due to lack of rains, while Indonesia and the Philippines estimate millions in losses in their agricultural sectors.“I do not recall a drought like this in the last 20 years,” said Nom, a Thai woman in her 80s from the central province of Suphanburi, sitting on the porch of her house, among rice fields, in the Don Chedi district, north of Bangkok.Dry cracks on the land are visible on some fields, but crops in others, more green fields, have not grown sufficiently and will also be lost.Nom laments the loss of this year’s first rice harvest and fears a second one, if the rains do not arrive soon.She says, if they manage to have a second harvest this year, her family of five members will probably be able to get around 50,000 baht (approximately $1,400) from the sale of the grain produced on their 1.44 hectares (3.6 acres) of land.Thai farmers, who in several parts of the country produce two harvests annually, are burdened by low prices of rice and mounting debt due to expenses of fertilizers and machinery.“Every year we use water from the canal when there are no rains, but this year it is unusually dry, even the canals are drying up,” said Suchart Nalengnit, a 52-year-old farmer.In the Philippines, in the first half of 2015, farmers reaped one of the worst harvests in recent years, due to excessive hot weather and scarce rainfall, prompting the government to declare a state of calamity in at least eight provinces.The Philippine Atmospheric, Geophysical and Astronomical Services Administration attributed these atmospheric conditions to the El Niño phenomenon and predicted it will last until early 2016, causing a significant decline in rainfall.Mey Virak, National Coordinator for Pandemic planning of National Committee on Disaster Management in Cambodia, says water levels of Mekong river and Tonle Sap lake is below normal.“Some communities hardly have any water; the rains will arrive very late this year. Cambodia needs water now,” Virak told EFE.Peru, on the other side of the ocean, had to declare a state of emergency in 14 of its 25 regions owing to an imminent danger of heavy rains.Rains in Chile has already affected thousands of people and caused destruction in various parts of the country.El Niño warms waters in the eastern equatorial Pacific, which leads to increased rains and floods in some countries in South America, while the western part of the ocean cools, reducing rains in Southeast Asia.Source - http://www.laht.com/

Thailand - Country is suffering from the worst drought in decades

Thailand is experiencing the worst drought in decades, with seven out of 67 provinces affected and water rationing taking place in almost a third of the country.Thailand’s Irrigation Department said that the amount of usable water in dams across the country, except in the West, have dwindled to below 10 percent and in the capital Bangkok tap water production has been slowing down since May.Meanwhile the drought is taking its toll on the country’s farmers.Rice farmers usually plant their paddy in June or July but because of critical water shortages, the Agriculture Ministry has asked farmers to delay planting their crop until August.According to the Office of Agricultural Economics, the delay could cost farmers in Thailand’s central plains 60 billion baht ($1.8 billion) in losses and straddle them with significant debt.“My entire investment for this crop could be gone with the wind,” 66-year-old rice farmer Boontham Cei-pa told Bloomberg. “I’m stressed out and don’t know what to do.”Thailand is one of the world’s top producers of rice, exporting more than 10 million tons annually. As a result of the drought, the Thai government has lowered its forecast rice exports for this year by 2 million tons.Fearing the drought could mean a rise in rice prices, African countries have increased their imports, the Nation reports.“The African market remains an important market for Thailand especially rice and parboiled rice,” Chukiat Opaswong, honorary president of the Thai Rice Exporters Association.In an effort to support farmers affected by drought, Thailand’s Finance Ministry Monday approved loans of up to 60 billion baht ($1.77 billion) for emergency funds and long-term assistance to increase farm productivity.Source - http://time.com/

USA - USDA releases Pacific region crop production report

The USDA, NASS, Pacific Regional Office today released the crop production report for July. The latest survey, which was conducted during the last week of June and the first week of July, includes the following commodities:Almonds – California’s 2015 almond production is forecast at 1.80 billion meat pounds, down 3 percent from May’s subjective forecast and down 4 percent from last year’s crop. The forecast is based on 890 thousand bearing acres. Production for the Nonpareil variety is forecast at 670 million meat pounds, down 6 percent from last year’s deliveries. The Nonpareil variety represents 37 percent of California’s total almond production.Apricots – California’s 2015 apricot production is forecast at 45.0 thousand tons. The California crop represents 85 percent of the total United States production. Apricot harvest began in early May. The early season varieties are reported to be lighter than normal.Oranges – The 2014-2015 California Navel orange forecast is 79.0 million cartons (1.58 million tons), down 1 percent from the previous forecast but up 2 percent from last season’s final utilization. Late navel orange harvest was finished early in June. The 2014-2015 California Valencia orange forecast is 19.0 million cartons (380,000 tons), down 5 percent from the previous forecast and down 11 percent from last season’s final utilization. The Valencia orange harvest is ongoing with exports continuing to Asian and domestic markets.Lemons – The 2014 2015 California lemon forecast is 40.0 million cartons, unchanged from the April forecast, but up 6 percent from last season. The lemon harvest is almost 85 percent complete.Grapefruit – The 2014 2015 California grapefruit forecast is 7.60 million cartons, unchanged from the April forecast, but down 1 percent from last season’s crop. The red grapefruit harvest started and continued throughout the month.Tangerines – The 2014 2015 tangerine forecast is 32.0 million cartons, unchanged from the April forecast but up 9 percent from last season.Production forecasts are released on a monthly basis and do not reflect final production estimates. Late summer and fall harvests may change these estimates considerably. The next production forecast will be issued August 12, 2015.Source - http://www.freshplaza.com/

USA - Crop Progress and condition report, July 12

For the week ending July 12, 2015, significant rainfall with isolated hail was received over the weekend in the northeast part of the State, according to the USDA’s National Agricultural Statistics Service. These storms caused lodging to small grains, but it was too early to determine the extent of damage. In the same areas, some producers were burning hay because of rot caused by the persistent wet conditions. Elsewhere, warm, dry conditions benefitted the development of row crops and allowed producers to put up good quality hay. There were 6.0 days suitable for fieldwork. Topsoil moisture supplies rated 0 percent very short, 5 short, 80 adequate, and 15 surplus. Subsoil moisture supplies rated 0 percent very short, 6 short, 80 adequate, and 14 surplus.Field Crops Report: Winter wheat condition rated 1 percent very poor, 8 poor, 27 fair, 53 good, and 11 excellent. Winter wheat coloring was 53 percent, well ahead of 18 last year.Durum wheat condition rated 0 percent very poor, 1 poor, 17 fair, 67 good, and 15 excellent. Durum wheat jointed was 97 percent, well ahead of 69 last year, and ahead of the five-average of 78. Headed was 59 percent, well ahead of 22 last year, and ahead of 41 average. Coloring was 1 percent, near 0 last year and 3 average.Spring wheat condition rated 0 percent very poor, 3 poor, 15 fair, 64 good, and 18 excellent. Spring wheat headed was 87 percent, well ahead of 57 last year and 59 average. Coloring was 20 percent, ahead of 2 last year and 11 average.Barley condition rated 0 percent very poor, 2 poor, 11 fair, 71 good, and 16 excellent. Barley headed was 92 percent, well ahead of 61 both last year and the average. Coloring was 12 percent, ahead of 5 last year, and near 13 average.Oats condition rated 1 percent very poor, 4 poor, 14 fair, 70 good, and 11 excellent. Oats headed was 90 percent, well ahead of 55 last year and 61 average. Coloring was 17 percent, ahead of 3 last year and 10 average.Corn condition rated 0 percent very poor, 4 poor, 19 fair, 67 good, and 10 excellent. Corn silking was 6 percent, near 5 last year, but behind 11 average.Soybean condition rated 0 percent very poor, 3 poor, 17 fair, 69 good, and 11 excellent. Soybeans blooming was 49 percent, well ahead of 23 last year, and ahead of 33 average. Setting pods was 1 percent, near 0 last year and 3 average.Canola condition rated 0 percent very poor, 3 poor, 20 fair, 59 good, and 18 excellent. Canola blooming was 93 percent, ahead of 83 last year, and well ahead of 71 average. Coloring was 8 percent, near 4 last year and 6 average.Sunflower condition rated 0 percent very poor, 6 poor, 17 fair, 72 good, and 5 excellent. Sunflowers blooming was 2 percent.Flaxseed condition rated 0 percent very poor, 1 poor, 15 fair, 76 good, and 8 excellent. Flaxseed blooming was 73 percent, well ahead of 37 last year and 43 average. Coloring was 1 percent.Dry edible peas condition rated 0 percent very poor, 1 poor, 19 fair, 66 good, and 14 excellent. Dry edible peas blooming was 87 percent, well ahead of 58 last year, and ahead of 73 average. Dropping leaves was 2 percent.Dry edible beans condition rated 1 percent very poor, 6 poor, 22 fair, 61 good, and 10 excellent. Dry edible beans blooming was 25 percent, near 21 last year and 27 average.Potatoes condition rated 2 percent very poor, 5 poor, 29 fair, 55 good, and 9 excellent. Potatoes blooming was 71 percent, well ahead of 45 last year and 46 average. Rows filled was 12 percent.Alfalfa condition rated 2 percent very poor, 8 poor, 27 fair, 55 good, and 8 excellent. Alfalfa hay first cutting was 79 percent, well ahead of 52 last year, and ahead of 73 average. Second cutting was 4 percent.Sugarbeet condition rated 0 percent very poor, 3 poor, 19 fair, 64 good, and 14 excellent.Livestock, Pasture and Range Report: Pasture and range conditions rated 1 percent very poor, 3 poor, 16 fair, 60 good, and 20 excellent.Stock water supplies rated 0 percent very short, 3 short, 84 adequate, and 13 surplus.Source - http://www.farmandranchguide.com/

USA - Texas Crop Report, July 15

Central: Rangeland, soil moisture, pastures, livestock and most crops were all rated as being in good condition. Most corn was mature, and early planted grain sorghum looked good, though there was some that required treating for sugarcane aphids and stink bugs. Late-planted sorghum crops may require spraying too, but there was concern the spraying costs would be excessive as sugarcane aphid pressure was likely to increase later in the growing season. Wet conditions were slowing harvesting of already mature corn and sorghum silage. Otherwise, it was one of the best years in quite a while for many dryland corn and forage sorghum growers. Hay yields were great because of abundant rain toward the end of the growing season. Pastures were in good condition. Cotton began to flower.Coastal Bend: Some parts of the region needed rain to sustain current growing conditions, while crops in other areas were in poor condition due to excessive rainfall. Cotton generally looked good, and corn was drying down and will soon be ready to harvest. Some farmers will start harvesting corn before grain sorghum. Producers were harvesting a lot of hay, and livestock were doing well with good grazing. Rangeland and pastures looked great, though weedy because of excessive rain. There was some disease pressure on grain sorghum, as well as a large boll-weevil egg count and some stink bug activity in cotton. But other than the scattered reports, insect problems were not severe. Some cotton producers were applying growth regulators.East: Weather conditions were hot and dry, with only a few counties reporting scattered showers. Ponds and creeks were full. Windy days dried out topsoils somewhat, but in most counties topsoil moisture was adequate, with a couple of counties reporting surplus moisture. Hay producers were taking advantage of the dry weather, baling as fast as they could. Because of earlier wet conditions, it was the first cutting for some producers. Some low-lying areas were still too wet to enter. Producers were also spraying or shredding pasture weeds where conditions permitted. Blackberries, blueberries and vegetables were being harvested with good yields. Disease problems on vegetables and ornamental plants leveled off with the drier and hotter weather. Cattle were in good condition. Livestock producers continued weaning and selling market-ready calves and cull cows. Horn flies and mosquitoes created problems for livestock producers.Far West: The district received from 0.5 inch to 3 inches of rain. Hudspeth and Culberson counties were without electricity for one to two days because of damage to power lines from high winds that accompanied the thunderstorms. Livestock were in good condition. Pastures were in good to fair condition, and corn and sunflowers were in fair condition. The fourth cutting of alfalfa was under way. Cotton began to square and was in good to fair condition. Topsoil and subsoil moisture were adequate.North: Topsoil moisture was mostly adequate, with some areas reporting short. Weather was generally normal for early July, with high temperatures in the mid-1990s. Some areas received from 0.5 inch to 5 inches of rain. Most all fields and pastures dried out enough to allow fieldwork and harvesting operations. Hay producers were taking either their first or second cutting of Bermuda grass hay. Yields were about average. The wheat harvest was mostly completed. Corn plants were short and not looking good. Late-planted cotton was behind in development. Pastures looked good despite some grasshopper pressure. Livestock were in good condition. Feral hogs continued to damage pastures and crops. Flies and mosquitoes were abundant.Panhandle: Thunderstorms swept through the region, bringing hail, high winds and 1 inch to 6 inches of rain. While many producers escaped major damages from the storm, others weren't so lucky. In Deaf Smith County, 2,000 to 4,000 crop acres were damaged, with some fields a total loss. Cornfields, with most of the crop in pre-tassel, were mainly affected. Sunflowers and grain- and forage-sorghum fields were also damaged but to a lesser extent. Producers across the region were gearing up to battle pests and weeds brought on by the wet conditions. Generally, crops were about two to three weeks behind normal development. Grasshoppers were becoming a serious problem in many areas. Cattle were doing well. The breeding season was almost over and calf weights were expected to be excellent as pastures were in good condition over most of the region.Rolling Plains: Parts of the region received from 0.3 inch to 4 inches of rain. Pastures were green, and livestock were generally in good to excellent condition. Stock-water tanks were full. Hay production was ongoing with very high yields. Peach growers were also seeing high quality and good yields. Most wheat was harvested. Wheat yields and test weights varied widely. Cotton and peanuts were slow to develop. There was some insect pressure from grasshoppers and fleahoppers in cotton.South: Temperatures rose throughout the region, drying soils in rangeland, pastures and croplands. Only a few areas in the western parts of the region had substantial rainfall. The rest of the region only received light showers. Rangeland and pastures generally were in fair to good condition. In the northern part of the region, corn and sorghum were drying out and maturing, cotton was forming bolls and early planted peanuts were flowering. Hay harvesting continued. Some producers began irrigating crops due to the drier conditions. Soil moisture was mostly adequate in the northern counties. In the eastern part of the region, most row crops were steadily maturing, and some were about ready for harvesting. However, harvesting of these crops will be spread out over time, as planting times and growth stages of most crops varied widely. Soil moisture remained adequate throughout the eastern counties. In the western part of the region, growers in Maverick County were able to harvest most vegetable crops before the heavy rains came. In Zavala County, some producers began irrigating cotton and some late-planted grain sorghum. The irrigation was likely the last needed to finish the crops. Watermelon growers were busy harvesting, and pecan producers were on the lookout for second-generation pecan case bearers. Soil moisture was mostly adequate in the western counties, except for Zavala County, which had 100 percent short subsoil and topsoil moisture. In the southern part of the region, corn and grain sorghum harvest was ongoing, and livestock remained in good condition. In Hidalgo County, sunflower harvesting wound down with disappointing yields. Sugarcane harvesting continued. In Starr County, grain sorghum harvesting just began. Soil moisture was rated as adequate throughout the southern counties.South Plains: Many counties received rain, from 2 to 7 inches, which kept producers out of the fields for a few days. The timing was perfect for irrigators, as the dry conditions had resulted in center pivots being run around the clock. Muddy conditions in Hale County were delaying cotton and causing some lameness in livestock. The Bailey County wheat harvest was nearly complete. Grasshoppers were a serious problem there, with many producers having already sprayed three times. Cochran County cotton was squaring. There was very little insect pressure on field crops there, and corn continued to mature. Peanuts were in full bloom, developing pegs and beginning to form pods. Lubbock County cotton was late but looked good. Grain sorghum and corn were entering reproductive stages. Some Garza County cotton fields were in standing water and others were saturated after 6 inches of rain. Rangeland and pastures were in mostly excellent condition. Some stock-water tanks received much-needed runoff. Mitchell County lakes were at higher levels than they have been for years after the rains. Rangeland was recovering from the multi-year drought, and grass was growing. Scurry County cotton was struggling with wind damage and standing water in fields after the thunderstorms brought 7 inches of rain.Southeast: Soil moisture throughout the region was mostly adequate to short, with adequate ratings being the most common. Rangeland and pastures were mostly in fair to good condition, with good ratings being the most common. With drier weather, many producers were harvesting hay while struggling to control weeds. Hay quality was down due to producers not being able to apply herbicides and fertilizers in a timely fashion, but yields were good. Waller County corn was stunted and yellowed due to excessive moisture, but pastures continued to improve and rangeland was in good condition. Cattle were stressed by high horn fly numbers. Mosquitoes and houseflies were nuisances. Grasshoppers were active. Watermelon growers were harvesting. In Fort Bend County, the drier weather allowed many producers to begin harvesting grain sorghum. Cotton there was progressing, and corn neared being harvest-ready.Southwest: Higher temperatures were the rule for the week, though generally mild for mid-July. Producers continued cutting and baling hay. Some sugarcane aphids were found in grain sorghum. Corn was rapidly maturing with the hotter and drier conditions. Some areas were having problems with rust in corn. Livestock were generally in good condition. Rangeland and pastures were also in good condition.West Central: Days were hot with warm nights. Heavy rains mid-week caused flash flooding in many areas. Stock-water tanks, ponds and soil moisture levels were in good condition. Field activities were slowed by wet conditions. Most cotton and early planted grain sorghum was in excellent condition. However, some cotton stands were expected to be lost due to standing water in fields. Summer forages were being harvested for hay, with excellent yields reported. Rangeland continued to recover from severe drought conditions. Pastures were in better shape than they have been in several years. Hay harvesting continued, with above-average yields. More hay had already been harvested in 2015 than in several years. A second cutting was expected to be taken soon on some fields. Livestock were in good to excellent condition. Livestock prices remained high, and herd rebuilding increased.Source - http://www.mysanantonio.com/

Australia - No subsidies for MPCI development

THE Abbott government will assist with developing a multi-peril crop insurance (MPCI) scheme to help farmers manage production risk - but won’t subsidise it like US and European Union governments, says Liberal MP Dan Tehan.The Agricultural Competitiveness White Paper delivered $29.9 million for farm insurance advice and assessments to help farmers with financial preparedness and risk management around climate variability.Agriculture Minister Barnaby Joyce said the $29.9m investment was “timely” given the Australian market was expanding for insurance products to help farmers manage risk, like MPCI.The funding was delivered with a package of measures to assist farmers with drought preparedness including changes to Farm Management Deposits and $250 million in drought concessional loans per year, over 11-years.Prime Minister Tony Abbott said his government, via the White Paper and other measures, had now put drought policy on a “sound footing”.“I think that we've got a reliable system for supporting people whose incomes have dried up with the water,” he said.“I think we've got a better system for supporting people whose businesses are in trouble because of drought.“I think this is a sustainable drought policy for the long-term.”Mr Joyce said the White Paper contained provisions to assist with a MPCI scheme through $2500 subsidies to provide a management plan so growers can self-insure against issues like “the vagaries of the climate”.“We've already put that past some of the State Ministers and we're looking at even some of them matching our contribution, so, this is a real change for the better,” he said.It’s understood the government’s $2500 grant will assist with funding the $5000 risk assessment offered by fledgling MPCI product provider Latevo and other potential insurers entering the market.The State’s matching contribution could potentially make up the remaining $2500 or half that amount to cover the audit which involves assessing producers’ five-year production figures, to gauge their eligibility for the scheme.However, producers would still need to pay the product premium and the federal government has steered clear of committing to underwriting losses for insurance providers.Mr Tehan welcomed the $2500 grant to help incentivise individual farm businesses to assess their suitability for an MPCI scheme.“This is a proactive response to future droughts and it allows farmers to take control and plan for future droughts by insuring against that,” he said.“What we are saying to Australian farmers is, ‘we’d like to get the private sector involved in this market’ so what we’re doing is giving an incentive for farmers to look to see whether this type of insurance would work for them.“We want them to take the initiative so we’re giving them a little help – and we want the State governments to provide some incentive as well.”Mr Tehan said the government’s hope was to have the private sector providing a MPCI insurance facility to growers in Australia, rather than the US and EU schemes which are underwritten by governments.“We’re trying to get the private sector to do the underwriting and we’ll provide the incentive to farmers to look at this product as another tool for them in dealing with the varying climate we have in Australia,” he said.“In an ideal world - if we can get the scheme up and running for cropping - we can then ask the insurers to look at broadening the product not just for cropping but to other commodities.“But we need to start by crawling, then by walking, then by jogging and hopefully by running.“It’s a step-by-step process but we have now given things a kick along, through this White Paper, to see if we can get things started in Australia.“One of the things that has made Australian agriculture so resilient is the fact our farmers have done it themselves, and have not been reliant on governments like the US and European Union where they’ve become beholden to government and their future isn’t being determined by themselves.“Their future is being determined by where the government is going on various individual subsidies.”NSW Farmers president Fiona Simson was chair of an industry taskforce that investigated establishing a MPCI scheme in Australia. The taskforce comprised industry members, banks, CSIRO and Australian Farm Institute executive director Mick Keogh.The taskforce convened by Grain Producers Australia also made a submission to the White Paper process.Ms Simson told Fairfax Agricultural Media the $2500 grant was positive recognition from the Australian government that a MPCI needs to be on the table and “is a good thing”.She said it also provided assurance that the federal government was talking to State governments about how they can potentially support it.However, she said there was still a way to go in terms of understanding government’s role in supporting the scheme’s implementation and operation.“We’d hope to continue those conversations to encourage more products into the market,” she said.“At this point – we think that there’s a bigger role for government than that currently outlined in the White Paper but we need to further develop that with more discussions.“We need to have a more products and affordable premiums and we need to encourage insurers into the market place.“That would allow for better competition which will impact premiums and once we have those competing insurers in place, we can then look at a broader product which can cover a cross-section of agricultural commodities, rather than just grains.”Ms Simson said the taskforce submission put forward several options to government on how they could be involved in a MPCI scheme and support a policy which is “a good starting point for future discussions”.Mr Joyce said the policy initiatives resulted from the concise work that came from over 1000 contributions to the green paper and white paper process.He said the final produce “shows that this is a government which takes agriculture seriously”.“We have to,” he said.“We have to make sure that agriculture regains its solid footing as a big contributor to the income of our nation as well as alleviate the downturn on other commodity products.”Source - http://www.northqueenslandregister.com.au/

USA - Clearwater County sees heavy crop loss

Farmers in parts of Clearwater County have lost nearly two-thirds of their crops this year because of drought, prompting the county commissioners to declare a state of emergency.On the other end of the spectrum, Washington State University scientists are warning that the current rains could cause sprout damage in wheat fields that have yet to be harvested.Source - http://lmtribune.com/

India - Insurance scheme for farming sector on the anvil

Union Finance Minister Arun Jaitley on Tuesday said the Centre was planning to spend Rs 50,000 crore on the farming and irrigation sector and plans were also afoot to roll out an insurance scheme exclusively for the farming sector to compensate for crop loss.Admitting that the condition of farmers is a “matter of concern”, Mr. Jaitley said, “In the coming time, we have plans to spend Rs 50,000 crore on farming and irrigation sectors in the country.”Addressing a public rally in chaste Punjabi here, the Union Minister said if the state governments come forward and utilise these funds, it will bring positive change in the field of agriculture sector.“The condition of farmers is a matter of concern...We are working on the next challenge wherein if farmer’s crop gets damaged, he will automatically get insurance amount for the crop loss while sitting at his home. We are bringing an insurance scheme only for the farming sector,” Jaitley said.Speaking in Mumbai on July 12, the Finance Minister had said, “Hopefully, in the near future, a viable and vibrant insurance scheme will be in place for farmers.”The present crop insurance schemes cover only the loans which a farmer has taken from banks.Noting that the agriculture sector presents its own set of challenges with successive low rate of growth over the years, he had admitted, “We have been unable to ensure even a 4 per cent growth consistently in the field of agriculture.”“With productivity levels reasonably low and 85 per cent farmers being small and marginal, the agriculture sector is afflicted by higher input costs, low level of irrigation, high indebtedness, absence of an effective insurance mechanism and adverse impacts of climate change,” Jaitely had told the 34th Foundation Day celebrations of Nabard here.Mr. Jaitley also described the alliance between SAD and BJP as a “social alliance”. “Besides political alliance, it is also a social alliance as both the parties have put in hard efforts to bring out the state from turmoil,” he said.He said the alliance worked hard to bring peace and prosperity in Punjab.The Union minister also visited ‘Meritorious School’ run by Punjab government and held an interactive session with its students.During the interaction, no student expressed interest in pursuing a career in agriculture sector as they showed keen interest in becoming doctor, engineer or join army.The finance minister also appreciated Punjab government for preserving numerous heritage sites. He said that many heritage sites belonged to different religions and the state government was giving due respect to all religious places.Jaitley also appreciated Punjab government for putting in Rs 200 crore for Ram Tirath Temple in Amritsar for its maintenance and renovation.The Union minister also said that the Centre will never hesitate in sanctioning adequate funds to bring improvement in state’s highways and road network.Source - http://www.thehindu.com/

USA - Dry counties get disaster designation

The U.S. Department of Agriculture announced Wednesday that 15 counties in Montana have been designated a primary natural disaster area after being given “extreme drought” status by the U.S. Drought Monitor last week.The designation includes Flathead, Lake, Lincoln, Sanders and Glacier counties.According to the National Weather Service, Kalispell’s precipitation total since Jan. 1 is only two-thirds of normal. Since June 3, measurable precipitation has fallen on only three days. June was the hottest month in history in the Flathead Valley.Farmers and ranchers in the 15 counties can receive financial assistance from the federal Farm Service Agency as a result of crop losses. Ranchers who own or lease grazing land in those counties now are eligible for grants from the state’s Livestock Forage Disaster Program.Ranchers can receive payments for three months of feed. In 2012 and 2013, the program provided almost $60 million in disaster relief to more than 4,100 livestock producers in the state.Crop producers can also receive loans from the federal government as a result of the declaration, provided they have sustained a crop loss of at least 30 percent.“Producers should check with their local FSA agent,” said Jayson O’Neill, a spokesman for the Montana Department of Agriculture. “Depending on insurance and a few other factors that can have an impact, for a crops producer, if they apply, it’s a loan program where they basically get a zero-interest loan.”Those affected have eight months from the declaration to apply for federal emergency money by visiting disaster.fsa.usda.gov.Another option for ranchers is the state’s hay hotline, an online tool for producers in need of hay or grazing land for their stock. It can be accessed at agr.mt.gov/agr/Producer/HayHotline.Nine other Montana counties — mainly east of the Continental Divide — and eight Idaho counties have received “contiguous disaster” designations. Because those counties share a border with a primary disaster zone, they are also eligible for emergency assistance.The primary disaster zone includes Beaverhead, Deer Lodge, Flathead, Glacier, Granite, Lake, Lewis and Clark, Lincoln, Missoula, Mineral, Pondera, Powell, Ravalli, Sanders and Silver Bow counties.The contiguous disaster zone in Montana includes Broadwater, Cascade, Choteau, Jefferson, Liberty, Madison, Meagher, Teton and Toole counties.Source - http://www.dailyinterlake.com/

USA - Should Washington End Agriculture Subsidies?

The U.S. government has been protecting farmers against unpredictable hardships such as bad weather since the 1930s, when drought and the Great Depression devastated the nation’s agriculture industry.Today, agricultural subsidies and insurance cost the U.S. taxpayers about $20 billion annually, according to the U.S. Government Accountability Office. That support has come under great scrutiny in recent years, with opponents complaining that most of the money goes to millionaire farmers and giant agribusinesses, not small family farms seeking to stay afloat.Congress revamped some agriculture-support programs in 2014, eliminating a controversial system of direct payments to farmers, while providing farmers with more subsidized crop insurance.But subsidy opponents weren’t satisfied. They say the government is still providing costly income support to an industry that doesn’t need it. Others disagree, saying farm subsidies provide U.S. consumers with necessary protection against food scarcity and high food prices.Vincent H. Smith, a professor in the departments of agricultural economics and economics at Montana State University and a visiting scholar at the American Enterprise Institute, makes the case for letting farmers stand on their own. W. Robert Goodman, who was an extension agricultural economist at the Alabama Cooperative Extension System and an associate professor at Auburn University before retiring, explains why farm subsidies should be preserved.YES: Farmers Don’t Need Them, and They Impede InnovationU.S. farmers don’t need support from U.S. taxpayers, either directly or through legislation that restricts the supply of a commodity to raise its price.First, many people seem to believe that farmers, like the Joad family in John Steinbeck’s “The Grapes of Wrath,” are poor, when in fact the average farm household enjoys an income that is about 15% higher than that of the average nonfarm family. What’s more, the 10% to 15% of farm families that receive more than 85% of all farm subsidies—amounting to millions of dollars a year in a few cases—have annual household incomes many times as large as those of the average U.S. taxpayer. Some estimates suggest that the farmers who receive the bulk of all subsidies—many of whom mainly raise corn, cotton, rice, peanuts, soybeans and wheat—are worth somewhere between $6 million and $10 million on average.Second, farming is anything but the risky business it is often portrayed to be. The sector certainly isn’t highly leveraged; the average debt-to-asset ratio in U.S. agriculture today is between 10% and 11%. And in contrast to the claims of the farm lobby and the private insurance companies (who take about $2 billion of taxpayer funds annually to deliver heavily subsidized crop insurance), competent farmers are perfectly capable of managing the year-to-year price and production risks they face.Less than 1% of all farms (about one in every 200) go out of business in any given year, and the three main causes of those failures are catastrophic health-care costs, divorce and incredibly poor management. Fortune 100 companies and Main Street businesses face much riskier financial environments.Third, farmers don’t need “stable” prices to stay in business, especially when stable means they can enjoy high prices but are protected from below-average prices through price-support programs. Most farmers are financially well-positioned to handle both price and production risks. Consider, for instance, that many livestock producers and fruit and vegetable growers run profitable and successful farms and provide plentiful supplies of produce to U.S. consumers without any significant support from the government.Rational responseThese days, crop-insurance subsidies are the major source of government largess for farmers. Some proponents say farmers wouldn’t be able to get crop loans without them. Anyone tempted to buy that argument should consider that before 1980, when crop insurance covered less than 20% of all operations because subsidies were small, banks made plenty of loans to farmers who didn’t have such coverage. They also make loans to livestock and fruit and vegetable producers who don’t have access to or don’t use crop insurance as a risk-management tool.The problem with subsidized crop insurance is that it allows farmers to operate in ways that increase the risk of crop and other forms of financial loss because they know that any losses they incur will be covered by taxpayers. Farmers have responded rationally by, for example, planting crops on poor-quality land, cutting back on things like pesticides and fertilizer that reduce the risk of crop losses and reducing the extent to which they diversify their enterprises (for example, by jointly raising livestock and crops).Subsidies also discourage farmers from being innovative and improving productivity. That’s because when any business is effectively guaranteed profits by the government, there is much less incentive to adopt new practices and technologies.Granted, subsidies have had a modest effect on reducing soil erosion because farmers are required to file conservation plans to receive them, but many economists believe the same effect could have been achieved through other means.Land-rich nationThe farm lobby may argue that subsidies lead to increased food output and lower prices for consumers, but that isn’t true when subsidies are considered as a whole. Some subsidy programs may produce that effect, but others do the opposite by taking farmland out of production for conservation purposes. And the idea that U.S. food security depends on government farm programs is an even weaker argument. As a land-rich nation, the U.S. is a net exporter of crops and food products and would be under any credible price scenario.At about $20 billion a year, total spending on agricultural subsidies is a relatively small part of the overall federal budget. But wasteful government spending is still waste, and most farm subsidies are wasteful.NO: They Keep Farming Profitable and StableModern society is far removed from agriculture. With only a small percentage of the population engaged in food production, few understand the fragile nature of modern farming and why government farm subsidies are necessary to protect the public from scarcity and high food prices as the world’s population expands to a projected 11 billion people by 2100 from seven billion now.Government subsidies help keep farming profitable and stable, allowing for the commercial finance of modern agriculture, the development of products and technologies that help farmers produce more food at a lower cost, and the preservation of production resources in case of future need.Today’s farm subsidies don’t “pay farmers not to plant.” Instead, they come in the form of insurance. Under the 2014 farm bill, farmers buy crop insurance, and the premium is subsidized by the government. Fewer payments are made in years of normal yield and price, thus subsidy cost can be very low. But the insurance provides farmers with the income security necessary to secure the loans they need to produce crops.Contrary to what some say, farming is “risky business”: Growing a single acre of corn in Iowa can cost over $500. With projected yield around 160 bushels and corn price around $3.30 per bushel, depending on weather, the profit margin farmers earn is small. But a farmer planting 1,000 acres of corn this year will need a “crop loan” of a half-million dollars. Getting a crop loan without insurance is like getting a loan without collateral. U.S. farmers will plant 89 million acres of corn in 2015. Financing this single crop will require about $45 billion. This is one reason why crop insurance, and crop-insurance subsidy, is necessary.Nobel Peace Prize winner Norman Borlaug, known as “the father of the Green Revolution,” insisted that continuous increases in world food production must come through adoption of more efficient technology, not through increased acreage. It is this increased productivity that has allowed for the preservation of significant amounts of ecologically sensitive acreage around the world. Agriculture subsidies have promoted rapid advances in productivity by encouraging the development and adoption of modern farming methods and materials by farmers who may not have been willing to take the financial risk otherwise.Farm subsidies also have resulted in a significant decrease in the rate of soil erosion from crop production. Since 1985, wind and water erosion rates of farmed land in the U.S. have declined more than 40% and are still trending downward, thanks to the development and widespread adoption of agricultural technology such as conservation tillage, establishment of streamside protection zones, and grass waterways and buffer strips. Farmers must agree to comply with these erosion-limiting practices to qualify for subsidies.Even at $20 billion a year, the cost of farm subsidies is modest compared with federal spending. And much of that cost is offset because as agriculture subsidies keep food prices low, they become transfer payments made by taxpayers to consumers of agriculture commodities—or, in other words, themselves.Like many products of the political process, agriculture subsidies are deeply flawed, in that farm policy hasn’t always kept up with rapidly changing economic and environmental conditions. But to those who complain that farm subsidies go to big companies and millionaires, my question is this: Shouldn’t those who produce the bulk of our food receive the bulk of farm payments? The fact is, large, efficient farms benefit the public by producing food at a much lower cost than would otherwise be possible.We must continue to craft agriculture policy that provides incentives necessary to ensure world food security, while constantly seeking to improve the fairness, equity, and efficiency of those policies. In Franklin D. Roosevelt’s 1937 inaugural speech, he defended his proactive efforts to bring the country out of the Great Depression when he said, “We refused to leave the problems of our common welfare to be solved by the winds of chance and the hurricanes of disaster.” That sentiment is apt here.Source - http://www.wsj.com/

USA - USDA crop weather report

For the week ending July 12, 2015, most of the eastern portion of the State received one to three inches of precipitation, according to the USDA’s National Agricultural Statistics Service.Temperatures were below normal, but warmed near the end of the week.There were 5.1 days suitable for fieldwork. Topsoil moisture rated 5 percent very short, 23 short, 63 adequate, and 9 surplus. Subsoil moisture rated 7 percent very short, 20 short, 69 adequate, and 4 surplus.Field Crops Report: Winter wheat condition rated 10 percent very poor, 20 poor, 37 fair, 29 good, and 4 excellent. Winter wheat harvested was 93 percent, ahead of 87 last year, but near 94 average.Corn condition rated 3 percent very poor, 9 poor, 33 fair, 48 good, and 7 excellent.Corn silking was at 47 percent, behind 53 last year, but near 48 average.Soybeans condition rated 1 percent very poor, 8 poor, 43 fair, 45 good, and 3 excellent.Soybeans planted was at 97 percent, near 100 last year and average. Emerged was 92 percent, behind 96 last year and 99 average. Blooming was 17 percent, behind 26 last year and 25 average.Sorghum condition rated 1 percent very poor, 3 poor, 30 fair, 63 good, and 3 excellent. Sorghum emerged was 96 percent, ahead of 93 last year, but equal to the average.Sunflowers condition rated 0 very poor, 2 poor, 30 fair, 60 good, and 8 excellent. Sunflowers planted was 94 percent, near 95 last year and average. Emerged was 85 percent, near 88 last year and 87 average. Blooming was 1 percent, near 2 last year and 5 average.Alfalfa hay conditions rated 1 percent very poor, 6 poor, 29 fair, 59 good, and 5 excellent. Alfalfa hay second cutting was 79 percent, near 75 last year and 82 average. Third cutting was 14 percent, ahead of 5 last year, but near 13 average.Cotton condition rated 0 percent very poor, 10 poor, 28 fair, 54 good, and 8 excellent. Cotton planted was at 96 percent, near 100 last year and average. Emerged was 86 percent. Squaring was 22 percent, near 23 last year, but well behind 51 average.Livestock, Pasture and Range Conditions: Pasture and range condition rated 2 very poor, 7 poor, 28 fair, 51 good, and 12 excellent.Stock water supplies rated 3 percent very short, 8 short, 83 adequate, and 6 surplus.Source - http://www.mcphersonsentinel.com/

USA - Storm flattens corn crop in Columbus

Storms that hit Columbus this week caused wind damage to corn crops.Harold Schwoerer said high winds flattened 30 to 40 percent of the 70 acres of corn he was planning to harvest in early September.Schwoerer said he grows and harvests the corn on land he rents from a dairy farmer. He then sells the corn to that farmer, who uses it to feed his cows.“This is just a reality check showing that the weather isn't something we can control,” Schwoerer said of the damage.“It was a beautiful crop,” Schwoerer said. “It was. Now it ain't so pretty.”Heidi Johnson, a crops and soils agent with UW-Extension, said corn stalks damaged by the wind are not automatic losses.“It's still green and it's still growing, so the corn has a chance to 'goose neck' back up,” Johnson said.“So it gets bent over. But then it can begin to grow back upright again, so it gets a goose neck appearance,” she said.Schwoerer said he's not very optimistic.“This may be a loss,” he said. “I don't have a lot of hope for it.”But Schwoerer said he's not down about the damage. He said dealing with the weather is part of being a farmer.“We can't control what God and Mother Nature give us,” Schwoerer said. “That's just the way it is. We deal with it year in and year out. But we'll be OK.”Source - http://www.wkow.com/