MATTHEW PUTNEY
Chris Balvanz, location manager at Prairie Land Cooperative loads seed corn into semi trucks in Cleves, Iowa, Friday, Aug. 14, 2009. The Cooperative is shipping out seed to make room for this years harvest even after crops in the area were damaged by hail. (MATTHEW PUTNEY / Courier Photo Editor)
ELDORA - Hail destroyed hundreds of millions of dollars worth of crops in Northeast Iowa this year.
But the impact on agriculture from what some producers are calling once-in-a-lifetime storms goes beyond shredded corn and soybeans. Farmers, cooperatives, Main Street businesses and grain processors will feel their losses for months, if not years, to come.
Farmers tilling the land for decades say 2009 is the worst and most destructive year they've ever experienced from ice - ranging from pea- to softball-size - falling from the sky. At least four major hailstorms have pelted the region during the growing season.
More than 600,000 acres have been hit. The latest storm a week ago impacted about 96,000 acres in Hardin County, according to Darwin Miller, the county's Extension director. Crop losses range from $25 million to $30 million, he said.
Other hailstorms include:
In late July, more than 400,000 acres, at least one-tenth wiped out, in six counties were impacted. Fayette County was the worst hit.
In early July, tens of thousands of acres in Black Hawk, Bremer and Fayette counties sustained damage.
In mid-June, an estimated 100,000 acres in Chickasaw, Winneshiek and Fayette counties were pummeled, particularly in and around Lawler.
"This is a sign of how volatile the weather is and why crop insurance is a necessity. The loss is just staggering," said Dave Hommel, co-owner of H&H Farms about 10 miles southeast of Eldora.
The bulk of his ground didn't take the brunt of the hailstorm last Sunday, which packed 70 mph winds. Hommel's crops weren't destroyed, but he believes yields will be reduced, possibly by 50 percent in some fields.
Farmers like Mike Teske, who lost at least two-thirds of 1,500 acres, is hoping crop insurance will be enough to pay operating expenses. He farms 5 miles northwest of Eldora.
"The old guys say they've never seen anything like it," Teske said. "I'm not sure if I'll break even or not."
The storms are bound to hurt businesses, except those selling building supplies. Farmers short on cash aren't as likely to buy new equipment and vehicles. Officials expect producers to keep close tabs on household spending.
Wayne Blythe, an agent with Farm Bureau Insurance in Eldora, said the vast majority of farmers spend about $20 per acre for federal crop insurance and often supplement that with private policies.
Crop insurance will keep producers in business, he said, but it won't make them rich.
"It's not near as good as to have a crop. And we had an excellent looking crop," Blythe said.
Prior to last week's storm, Ron Barkema, grain merchandiser for Prairie Land Cooperative, was worrying about how to store what was shaping up to be a bin-busting harvest in Hardin County. Unfortunately, he said Mother Nature eased those concerns.
The Hubbard-based co-op with 15 locations can store 27 million bushels. It handles the bulk of the grain in the Hardin County. Barkema estimates the co-op will take in 5 percent fewer bushels, which means less drying and storage income.
"It's not good for our customer base. It will effect them the next 12 months down the road," Barkema said.
Other co-ops in the region will experience the same thing.
Prairie Land is working with farmers with hail losses to get out of delivery contracts. Farmers will need buy them out. Barkema said the co-op has enough grain to meet its delivery obligations.
Area ethanol plants and soybean processors may have to expand their area to acquire raw materials. None are worried about grain shortages, but there will be fewer bushels available in certain areas.
Pine Lake Corn Processors of Steamboat Rock usually sources corn from a 20-mile radius to make ethanol.
"We may have to go out a little farther," said Larry Meints, plant president. "I'm sure it will impact us some."
A sizable amount of corn and soybean seed is grown near Eldora, home of Garst and Remington seed corn production facilities. Many Fayette County farmers also raise seed. All the major seed companies - Pioneer, Monsanto and Syngenta - have a presence in the region.
Company officials said there won't be a shortage of seed since they all spread out production to limit weather-related disasters. However, a Remington official - the company grows and bags seed for small independent seed companies - said some new regionalized varieties may be harder to get next year.
"Selection may be limited in some new hybrids. The reality is it affects a lot of companies," said Bryan de Neui, Remington plant manager in Eldora.
Livestock, for the most part, escaped natures fury last Sunday. Miller said the vast majority of acres impacted were tillable, void of animals in pastures without shelter. There were a couple of horses that needed to be euthanised from injuries, he said.
Gov. Chet Culver requested U.S. Agriculture Secretary Tom Vilsack declare 23 counties hit by hail and flooding, mostly in Northeast Iowa, disaster areas so farmers are eligible for low-interest loans and other federal assistance. Hardin County wasn't included, but state officials said it will be a separate request since all assessments haven't been completed yet.
Posted in Local on Sunday, August 16, 2009 12:00 am Updated: 6:02 pm.
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