EN 中文 DE FR عربى

Rapid US Corn and Soybean Harvest Strains Farmers and Storage Infrastructure

USA 24.10.2024
Source: DairyNews.today
395 EN 中文 DE FR عربى
U.S. farmers are racing through one of the fastest and largest corn and soybean harvests in recent years, creating significant strain on both their physical capacity and grain storage facilities, according to a report by Reuters. As two of the biggest crops in history flood in, growers are facing logistical challenges amidst depressed market conditions.
Rapid US Corn and Soybean Harvest Strains Farmers and Storage Infrastructure
This rapid harvest comes at a time when grain prices are hovering near four-year lows, and farmers are contending with reduced farm incomes, which are down 23% from their record levels just two years ago. Additionally, stiff competition in global export markets is intensifying the pressure.

Many farmers across the Midwest still have unsold grain from the 2023 harvest stored on their farms, as they held off on selling due to low prices. The current season’s harvest, accelerated by favorable dry weather, is exacerbating storage issues, forcing some grain handlers to store corn outside rather than in traditional storage bins.

"It has been fast and furious," commented Brent Johnson, a corn and soybean farmer from Ashland, Illinois. He echoed the sentiment of many farmers experiencing an expedited harvest due to weeks of warm and dry weather across the Corn Belt, which allowed crops to mature quickly. By October 13, farmers had harvested 47% of the U.S.’s second-largest corn crop in history, significantly outpacing the five-year average of 39%. Similarly, the harvest of the record-breaking soybean crop was 67% complete, marking the fastest pace since the drought-stricken year of 2012.

The rapid pace is taking a toll on labor and equipment, with many farm operations working around the clock. Jeff O'Connor, who farms corn and soybeans near Kankakee, Illinois, remarked that his employees had only a few half-days of rest during the month-long push to bring in the crops. "My people and equipment would like a break," O'Connor said.

As soybean harvesting nears completion, attention is shifting to corn, which typically yields over three times the amount of grain per acre compared to soybeans. However, storage capacity is becoming a critical bottleneck. In some areas of the Midwest, elevators are filled to capacity, leading to long lines of trucks waiting to unload their grain. In Shell Rock, Iowa, local farmer Caleb Hamer noted that ethanol producer POET has resorted to storing corn on the ground, with one pile estimated to hold around 1.5 million bushels.

Chad Henderson, founder of Prime Agricultural Consultants, based in Wisconsin, highlighted the infrastructure challenges. "We are harvesting a crop too fast for our storage infrastructure," Henderson explained, warning that the localized storage crunch is creating tough decisions for farmers. Some may be forced to sell their crops below production costs, despite signals from the futures market encouraging them to hold onto the grain for several months.

On the Chicago Board of Trade, benchmark December corn futures are trading at a roughly 22-cent discount to the May 2025 contract, indicating that farmers could earn an additional 22 cents per bushel by waiting to sell. However, CoBank economist Tanner Ehmke cautioned that storing the harvest without prearranged sales could expose growers to even greater risks in the event of a further market downturn.

Chris Gibbs, a corn and soybean farmer in Ohio, admitted the challenges of navigating the volatile market this season. For the first time in his 48-year career, he has not made any advance sales of his autumn harvest. "My marketing plan is to keep my head down and wait for an opportunity to come along, which is a very poor plan," Gibbs said, underscoring the uncertainty facing U.S. farmers during this rapid and intense harvest season.

Calendar