By TIM THORNBERRY
Kentucky Correspondent

FRANKFORT, Ky. — As the flooding continues in areas near the Ohio and Mississippi rivers, damage assessments continue to come in from those states and further south.

The flooding is reported to be the worst in modern knowledge, while the destruction in areas of Mississippi, Alabama and Georgia is beyond description. While damage such as this is detrimental any time it occurs, it probably couldn’t have happened at a worse time from an agricultural standpoint.
Fields all along both rivers have flooded during the peak of corn planting season. If there is any consolation, less than 20 percent of Kentucky’s corn crop had already been planted as of May 1, according to the USDA National Agricultural Statistics Service (NASS.) That compares to a five-year average of 59 percent for the same time of year.

The University of Kentucky (UK) College of Agriculture reports the situation may lead farmers to plant soybeans rather than corn. Even as flood waters crest, the drying period could be as much as two weeks, if dry conditions prevail. That would push the planting period into late May and could result in yield losses.

This sets up a sort of good news/bad news scenario. Typically, corn planted after the second week of May is likely to suffer about a 1 percent yield loss per day, according to information from the UK. The good news is, central Kentucky data suggest producers could plant as late as May 20 and still see normal yields.

If farmers switch to soybeans, this will add to an already huge increase expected in soybean planting intentions. In fact, soybean planting is expected to be the highest in more than 25 years, with 1.48 million acres intended in Kentucky, an increase of 80,000 acres over 2010 numbers, reports NASS.
But with corn prices being higher than soybeans, in relative terms, producers would likely see smaller profits by making the switch. This may be the determining factor when it comes to planting corn late or not at all.
“Corn prices have increased considerably in the last month relative to soybeans,” said Greg Halich, UK extension agricultural economist. “As a consequence, the profitability of corn is quite high compared to soybeans, by historical standards. This will extend the corn planting season further into spring than would normally be expected.”

He added if conditions in the heart of the Corn Belt do not improve quickly, it is likely the market will respond by further increasing the price of corn relative to soybeans. “Should this occur, the dates will move out further into the planting season, and it would be likely that even on fair ground, corn would still be more profitable than soybeans into early June,” Halich said.

A disaster

Kentucky Gov. Steve Beshear declared a state of emergency on April 25 and requested a disaster declaration from the federal government. His request was granted last week.

“I am thankful to the White House for quickly granting my request,” he said.  “While it will be a long recovery from the recent storms and flooding that have hit the Commonwealth, this assistance will greatly help Kentucky families and communities rebuild.”

While Kentucky and surrounding states are dealing with flood waters and wet conditions, those further south are still picking up the pieces in the wake of devastating tornadoes at the end of April. Alabama was perhaps hardest hit, with estimated total damages reaching into the billions of dollars.

The agricultural sector suffered massive losses as part of the destruction, with the poultry industry taking the brunt of the blow.

The latest estimates from the Alabama Department of Agriculture and Industries (ADAI) reports more than 500 poultry houses were damaged and more than 200 were destroyed resulting in a loss of more than three million birds. The state’s poultry industry ranks third in the United States and, according to information from Auburn University, Alabama poultry production accounted for a projected 75 percent of its farm income in 2010, with a current total economic impact of more than $8.5 billion annually – or 10 percent of the state’s total economy.

Tyson Foods, which employs approximately 2,000 people in Alabama and depends on more than 340 contract growers, is helping those growers with cleanup efforts as well as helping to feed them, along with relief workers and local residents.

“We’re shocked and saddened by the impact of these powerful spring storms, and are pitching in to help those whose lives have been turned upside down by the devastation,” said Donnie Smith, president and CEO of Tyson Foods.
Amy Belcher, ADAI communications director, said if anyone would like to make a donation directly to poultry grower families, a relief fund has been established.
“There will be an application process for families to receive this assistance, to assure that the funds are distributed fairly and to those truly in need. These families not only lost their poultry houses, their primary source of income, some of them literally only came away with the clothes on their backs,” she said. “This money will help these families in some small way replenish their personal losses.”

Checks should be made out to the Alabama Poultry Foundation Tornado Relief Fund and mailed to: Alabama Poultry Foundation Tornado Relief Fund, P.O. Box 240, Montgomery, AL 36101, or call  800-254-2732 for more information.