By Linda Smith, Farm Credit Services of America
Good Progress Planting Beans
Farmers in the region served by Farm Credit Services of America made good progress planting in the week ended May 31, according to USDA. Soybean plantings made a nice jump from 70 to 78 percent in Iowa, from 59 to 74 percent in Nebraska, and from 60 to 76 percent in South Dakota. However, this is still behind the average for this time of year; Iowa’s average is 83 percent and Nebraska’s is 87 percent. Only South Dakota is ahead of its 67 percent average. The 18 reported states are 71 percent complete against an average of 70 percent.
Soybean emergence is well behind average in Nebraska, at 41 versus 57 percent. Iowa is two points behind its 55% average, while South Dakota is 10 points ahead of its 32 percent average. In the 18 states USDA reports, emergence hit 49 percent; average is 45 percent.
The final planting date for soybeans is June 10 in South Dakota and Nebraska, and June 15 in Iowa. The National Weather Service’s 10-day forecasts show South Dakota’s precipitation outlook as neutral but odds are in favor of Nebraska and most of Iowa receiving some moisture. Private forecasters are calling for scattered thunderstorms, suggesting some areas may get the rest of planting done and others may not.
Crop Insurance Implications
Producers who are unable to plant all their corn or soybeans have several options after their final plant date.
The first is to go with Prevent Plant, provided under multiperil (MPCI) coverage, which pays them 60 percent of their insurance guarantee. The insured can make this decision for corn or soybeans after the final plant date for the crop or during the late planting period. Most producers favor soybeans during the late planting period, though grain sorghum works for some. However, its final plant date was May 31 in South Dakota and is June 5 or June 15 in Nebraska, and June 10 in Iowa.
The other option would be to plant a forage crop such as Sudan grass or forage cane. The rules are different for forages than for grain crops, so producers should contact their agent before planting any crop on Prevented Planting ground so they can make an informed decision regarding second crops or cover crops.
In addition, farmers are in the midst of hail season, says Traci Ring, an insurance operations specialist at Farm Credit Services of America, who reminds farmers to consider crop hail coverage options. A single hailstorm can be extremely destructive.
Corn Planting Almost Done
As the last of corn’s crop insurance final planting dates in these states arrived, corn planting was at or ahead of average everywhere except Nebraska, where it hit 94 percent against a 99 percent average. Emergence is three (Iowa) to five (South Dakota) percentage points ahead of average; again, Nebraska is lagging average—in this case, by two points. In the 18 reported states, 95 percent of the corn is planted and 84% has emerged. The 18-state averages are 94 percent planted and 79 percent emerged, respectively. It is early in the season to put much credit in condition, but Iowa is 80 percent good and excellent (2 percent poor); Nebraska, 65 percent good/excellent (4% poor) ; South Dakota, 68 percent good/excellent (7 percent poor) and the 18 states, 74 percent good/excellent and just 3 percent poor.
The way the season is shaping up thus far, those with revenue coverage may be watching for claims due to lower fall prices rather than yield losses. The recent progress has prompted money managers to grow their biggest short position ever in soybeans based on CFTC numbers; they also were net short in corn, hard red winter wheat, spring wheat, oats, rice and cotton as of May 26.
Source: Farm Credit Services of America
Farm Credit Services of America, based in Omaha, Nebraska, is dedicated to serving the agricultural credit, risk management and financial needs of farmers and ranchers in Iowa, Nebraska, South Dakota and Wyoming. For more information on the Farm Credit System and other Farm Credit Associations visit www.farmcredit.com.