(KNSI) – Corn harvest is underway across the Midwest, and producers in Iowa are finding that more of their cornfields are unable to be harvested after a derecho struck the central region of the state on August 10th. This damage can have long-lasting effects as farmers in Minnesota harvest and sell corn this year.
The Des Moines Register reports that the USDA estimates 850,000 acres of corn in Iowa cannot be harvested after intense winds and rain from the derecho damaged them, and grain marketing advisor Al Kluis said crop yield in fields surrounding those that were lost are also lower than expected. The corn crop lost in Iowa is pulling down the nationwide yield.
With the U.S.’s corn harvest projected to be smaller because of the derecho’s damage, the corn market has rallied; its commodity price stands at $3.90 per bushel Tuesday morning, a significant increase from $3.11 on August 10th. This, in conjunction with higher soybean commodity prices, means animal feed is more expensive.
“That will lead to farmers not feeding their livestock as heavy and not as much beef and pork being produced, so the long-term impact, quite often, is higher meat prices for the consumers,” Kluis said.
In addition to prices at the grocery store, corn losses after the derecho might also affect Minnesotans’ gas tanks.
“Each bushel of corn produces 2.8 gallons of ethanol, then all of a sudden the price of corn going up by 70 cents a bushel really impacts the ethanol profitability,” Kluis said. “And they’ve been struggling anyway with lower crude oil prices, lower gasoline prices, reduced demand because of the COVID-19 shutdowns.”
In the short term, increased corn commodity prices have not affected gas prices, but corn prices could drive ethanol production plants to slow down production or shut down entirely after a few months.
The USDA National Agricultural Statistics Service’s October 5th Crop Progress report states that 14 percent of Minnesota’s corn crop has been harvested.
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