Feed Prices

No Dryland Crop to Harvest: West Texas Cotton Farmers Open Up About the Harsh Realities of 2023

Mon, 11 Dec 2023 21:19:40 GMT

No matter where you travel in west Texas this year, the story is the same. Drought and heat created an endless battle for area cotton farmers.

“It was a devastating year,” says Casey Jones, a farmer in Lubbock, Texas.

“This is my 49th crop, and it’s been the toughest one to make,” says Bobby Rackler, a farmer in Hockley County, Texas.

Harsh Realities of 2023

The combination of heat and drought dried up hopes of growing a crop this year. Casey Jones’ farm ground is right on the edge of Lubbock, and he says if you ask any area farmer, they’ll tell you the 2023 cotton crop is one those farmers would like to forget.

“I’ve talked to a lot of my farmer friends about that, and it’s one of those years where you tell yourself, ‘Let’s get this one behind us, get it out of the books and let’s get on to a better one,’” says Jones.

Rackler says the challenges continued to mount for the West Texas cotton crop.

“Just everything went against it,” says Rackler. “We had 46 days of over 100 degrees and no humidity.”

Dryland Crop is Nonexistent

Farmers in West Texas didn’t have much of a crop to harvest this year. If a farmer only had dryland acres, they didn’t even have a crop to harvest this year.

“Everyone I’ve talked to is disappointed,” says Racker. “Their yields are way down, some of them lost all of their crop, and they’re not even harvesting.”

Fields that have no irrigation took the brunt of the heat and dryness, as those fields didn’t survive the harsh realities of 2023.

“The dryland is a total failure,” says Rackler. “The irrigated cotton is making a half of what it usually makes. A normal year, our cotton on drip irrigation, will make three bales, but this year it’s only making about a bale and a half.”

Cotton harvest can drag on some years, but not this year. Jones says harvest only lasted eight days. And it’s all because the dismal crop meant farmers had less to harvest.

“I’ve heard farmers across the board say the irrigated ground is about two bales to two and a quarter bales [per acre] on drip. I’ve got some pivots that’ll probably go anywhere between a bale and a half [per acre],” he adds.

Tough Start

The growing season started out extremely dry. When Farm Journal visited with farmers in March , they were still debating whether to plant. Consecutive years of little to no moisture meant subsoil moisture was nonexistent. Add to that severe winds in the late winter and early spring, and any winter cover crop and winter wheat didn’t survive the winter.

“We started off really dry and windy from all the way from February, March and April,” says Jones. “We had heavy sustaining winds of 82 mile-per-hour straight line winds.”

After winds and drought demolished cover crops and winter wheat area farmers planted late last year, they finally saw some rain that ended up delaying planting.

“We had 13 inches rain in May, and we really thought that was going to be it. The rain changed our outlook a little bit to go into a summer that was actually wet,” says Jones.

That relief, however, was extremely short-lived. The weather turned dry and hot, quickly zapping the moisture that came in May.

“We sustained 100-degrees-plus for 60-days-plus,” says Jones. “You have to understand that people don’t do good in 100 degrees, so you can imagine what plants do with limited water. It’s really tough.”

Largest Cotton Patch in the U.S.

The West Texas area is critical for cotton production. USDA shows Texas growers produce 42% of the country’s cotton . The area surrounding Lubbock, Texas, is known as the largest cotton patch in the U.S. And the majority of the cotton crop currently seeing extreme drought conditions is in that key cotton production area.

As cotton prices dropped this year, it’s been puzzling to farmers who are experiencing their worst production year on record. Farmers in West Texas know profits will be slim, but in this area of the country, they’ve learned they still have to protect one of the most precious resources they have.

“We started the first drip in 2008 here because it was a better usage of the water. It has no evaporation. I was skeptical at first, but I found out it does work. And it is stretched our water a lot more,” says Rackler.

Rackler adds that one of his farms had three pivots at one time, pumping 1,200 gallons a minute.

“Now I’m down to 500 gallons on the same well. And it’s just stretching your water further and utilizing it the best way you can,” he says.

The downfall is drip irrigation comes with a hefty cost. It’s double the cost of pivot irrigation systems, yet it’s those investments these farmers hope will pay off longer-term.

“It’s kind of the rule of 10,” says Jones. “You’re going to get several good years in there, you’re going to get a lot of bad years, and you’ve got to make sure to manage those bad years with the good years.”

As farmers reflect back on 2023, they’re surviving the harsh reality of such a trying year. Jones says there’s only one way to summarize the year West Texas farmers just endured.

“Let’s wait for next year,” says Jones with a smile on his face.

U.S. Farm Report and AgDay are hitting the fields to check on cotton harvest progress and yields with the 2023 Cotton Harvest Tour this year, which is sponsored by Deltapine® . The tour is visiting farmers in east-central Texas, Georgia, Tennessee and wrapped up in West Texas.

Put Numbers to Your Goals: Multiyear Budgets

Tue, 01 Aug 2023 21:13:48 GMT

Multiyear budgets provide focus and remove surprises.

Most of the decisions you make for your farm extend beyond the current calendar year. Yet, most budgets are limited to 12 months. To position your farm for growth and avoid financing shortfalls, create a multiyear budget.

“Most business expansions get in financial trouble not because they aren’t profitable but because they are growing so fast,” says Allen Featherstone, an agribusiness professor at Kansas State University. “They outgrow their equity base, as most capital needs are multiyear.”

A multiyear budget incorporates long-term goals and trends. Similar to an annual budget, a multi-year budget factors in income and expenses to help make good decisions. But instead of having actual numbers, you use more estimates and historical data.

“Because so many factors can change, you take a high-level approach,” Featherstone says. “Build out the details based on assumptions of the current financial conditions.”

This type of budgeting helps you finetune your business focus, says Kala Jenkins, agriculture consultant with K•Coe Isom.

“You can always modify the multiyear budget down the road,” she says. “In having one, you have a better understanding of your farm’s cash flow needs and potential expenditures, along with the risks and opportunities you could face in the next few years.”

Don’t let the uncertainty of the future throw you off track. “For instance, if you are concerned about prices fluctuating, do low, medium, high forecasts for prices,” Jenkins says.

Set the Stage for Growth

If you are looking at expansion or diversifying your operation, a multiyear budget is critical, Featherstone says. “In additional to the initial investment of a hog or dairy facility, for example, you likely won’t be at capacity the day it is done. You need to plan how you will work up to the capacity needed to make it profitable.”

Include your lender and other partners in your budgeting process. They can help you fine tune your data and hold you accountable.

“When you’re talking to lenders, it’s good to have a longer-term plan,” Featherstone says. “Then they can anticipate your capital needs.”

The Basics of Multiyear Budgeting

Compared to annual budgets, multiyear budgets take more time investment. But they also provide a good path for the future, according Kansas State University’s Allen Featherstone and K•Coe Isom’s Kala Jenkins. Follow these guidelines.

Aim for a 3- to 5-year forecast period.
Use rough averages for your income and expense categories.
If you are looking at expanding or a new venture, use this process to analyze when and how much capital you’ll need until you reach financial stability.
Review your multi-year budget each quarter and update with new information.

Budgets are never perfect — but you need to complete one. Learn the six steps to take in your budget process.

Corn Planting Progress the Slowest Since 2013

Tue, 03 May 2022 20:39:25 GMT

As of May 1, USDA estimates 14% of the U.S. corn crop has been planted. That compares to a five-year average of 33% planted. Last year, 42% was planted by May 1.

This year’s planting pace is the slowest since 2013.

Roll over the grey buttons below to get a closer look at each state.

Which states are the furthest behind?

State	Percent Complete	5-Year Average	Percentage Points Behind 5-Year Average
Illinois	7	43	36
Iowa	9	42	33
Minnesota	0	28	28
Missouri	27	52	25
Indiana	6	25	19
Kentucky	26	42	16
Tennessee	42	55	13
Ohio	3	16	13
Wisconsin	1	14	13
South Dakota	3	13	10
Michigan	1	10	9
Nebraska	28	34	6
Colorado	13	19	6
North Dakota	0	5	5

*As of May 1, 2022

Meanwhile, North Carolina and Texas are ahead of the five-year average for corn planting.

See AgWeb’s Corn Planting Map :

U.S. farmers had planted just 14% of their #corn crop by May 1, the slowest for the date since 2013 and well behind the average of 33%. That is up from 7% in the prior week. Trade expected 16%. pic.twitter.com/1C4z6SWMRy
— Karen Braun (@kannbwx) May 2, 2022

As of May 1, USDA estimates 8% of the U.S. soybean crop has been planted. That compares to a five-year average of 13% planted. Last year 22% was planted by May 1.

Illinois, Iowa and Indiana are the furthest behind in soybean planting compared to the five-year averages for each state.

Roll over the grey buttons below to get a closer look at each state.

See AgWeb’s Soybean Planting Map :

Cotton planting is on pace with 16% of the crop in the ground, which is on pace with last year and the five-year average.

See the full Crop Progress report .

Corn Hits New Eight-Year Peak, Soybeans Rally on Supply Worries

Thu, 06 May 2021 20:11:42 GMT

Chicago Board of Trade corn futures extended a rally on Thursday above eight-year highs as dry weather threatened harvest yields in major exporter Brazil and kept the focus on ebbing global supplies.

Soybeans approached an 8-1/2-year peak reached last week, buoyed by rallying vegetable oil prices, while wheat was little changed.

Corn crop losses due to dryness in Brazil could shift export demand to the United States, which is already grappling with tight inventories, analysts said.

“We’re still very dry in Brazil,” said Brian Hoops, president of U.S. brokerage Midwest Market Solutions. “That crop is in retreat.”

The most-active corn contract was up 5-1/4 cents at $7.13-3/4 a bushel by 11:25 a.m. CDT (1625 GMT). It earlier touched the highest price since March 2013 at $7.22-1/2.

December corn that represents the next U.S. harvest was up 15-1/4 cents at $6.20 a bushel, after setting a contract high of $6.22-1/4.

CBOT wheat was flat at $7.44-1/2 a bushel.

The most-active soybean contract soared 24-1/2 cents to $15.66-3/4 a bushel. November soybeans that represent the next harvest set a contract high and were up 26-1/4 cents at $14.09.

Rising new-crop soy and corn prices reflected the battle to incite U.S. farmers to increase plantings to replenish tight stocks, analysts said.

Brokers are beginning to grow nervous that cool weather will slow the emergence of recently planted corn.

“There’s some concerns that this year’s crop is not off to one of the greatest starts ever,” Hoops said.

A 13-year high for palm oil, against a backdrop of tight global edible oil supplies, helped boost soybean futures, traders said.

World food prices increased for an 11th consecutive month in April to a near-seven year high, according to the United Nations food agency.

“The sentiment is pretty bullish, not just in corn but the entire grains complex,” said Phin Ziebell, agribusiness economist at National Australia Bank.

(Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Edmund Blair, Kirsten Donovan)