News Update
August 17, 2011
Texas Agricultural Drought Losses Reach Record $5.2 Billion
The historic Texas drought has led to a record $5.2 billion in agricultural losses, making it the most costly drought on record, according to Texas AgriLife Extension Service economists.
“The drought of 2011 will have a lasting impact on Texas agriculture,” said Travis Miller, AgriLife Extension agronomist and a member of the Governor’s Drought Preparedness Council.
“This drought is ongoing,” said David Anderson, AgriLife Extension livestock economist. “Further losses will continue if rainfall does not come soon to establish this year’s winter wheat crop and wheat grazing.”
The $5.2 billion in losses exceeds the previous record of $4.1 billion during the 2006 drought. The losses also represent 27.7% of the average value of agricultural production over the last four years, Anderson said.
The current drought losses have reached record levels in large part due to Texas farmers failing to cash in crops during times of high commodity prices, economists said. The state’s cattle producers continue to cull herds at historic levels and spend money on expensive supplemental feed.
“Livestock losses include the increased cost of feeding due to lack of pastures and ranges and market losses,” Anderson said. “Market losses include the impact of fewer pounds sold per calf and the impact of lower market prices due to the large number of cattle sold in a very short time period.”
The following are losses by commodity:
- Livestock: $2.06 billion (includes $1.2 billion previously reported in May);
- Lost hay production value: $750 million;
- Cotton: $1.8 billion;
- Corn: $327 million;
- Wheat: $243 million;
- Sorghum: $63 million.
To remain comparable to past drought loss estimates, Wednesday’s loss estimates do not include losses to fruit and vegetable producers, horticultural and nursery crops, or other grain and row crops.
“In that regard, these estimates are considered conservative,” Anderson said. The $5.2 billion total released Wednesday takes into account $1.2 billion in drought losses previously reported by AgriLife Extension in May, which were primarily livestock-related losses due to added supplemental costs and lost grazing.
“The drought began for much of the state in September 2010,” Miller said. “Much of the Gulf Coast, Central, West Texas and the High Plains had seen abundant moisture in the summer from Tropical Storm Hermine and other rainfall events. An unusually strong La Niña pattern moved into place in the fall of 2010, which had an impact comparable to turning off the ‘rainfall switch’ for most of Texas and surrounding states.”
October 2010 through July 2011 was the driest 10-month period in recorded Texas weather, Miller said.
“The drought, coupled with prolonged high winds and record temperatures were enormously destructive to Texas agriculture and natural resources,” he said. “The summer rains caused grass growth, which provided fuel for an unprecedented fire season, with more than 3.3 million acres of Texas ravaged by wildfire.
“This destructive climatic pattern has taken a huge toll on crops and forages, and the timing could not have been worse for Texas producers, as all of the major agricultural commodities are enjoying strong prices.”
Combined losses for wheat, corn and sorghum grain farmers in Texas due to drought are more than $600 million. Mark Welch, AgriLife Extension grains economist, said Texas wheat production in 2011 is about half what it would have been in a normal year.
“Wheat yields were down from a five-year average of 30 bushels to 26 bushels per acre and abandonment was up,” he said. “Given this year’s plantings of 5.7 million acres, we would have harvested 2.8 million in a normal year. In 2011, harvested acreage is estimated at only 2 million acres, down 800,000 acres. The combination of yield losses on harvested acres and higher abandonment put Texas wheat-for-grain losses at $243 million.”
Texas corn production is estimated to be down about 30% in 2011, Welch said, with harvested acres down 16% due to higher abandonment rates.
“Yields are down 16% statewide,” he said. “Highlighting the severity of this year’s heat and dry conditions is that the most severe yield losses are seen in the irrigated corn grown in the Panhandle. The average corn yield in the northern High Plains is estimated at 165 bushels per acre compared to a five-year average of 205 bushels, down 40 bushels per acre. Yield losses and abandonment will cost Texas corn producers about $327 million in 2011.”
Grain sorghum production in Texas, according to Welch, is expected to be about half of normal in 2011. The 1.6 million acres planted this spring marked the lowest in Texas history.
“Then drought lowered yields and raised abandonment rates,” he said. “The drought estimates for sorghum reported are based only on the yield and harvested acreage estimates from U.S. Department of Agriculture (USDA). This totals about $63 million.”
Meanwhile, Texas cotton growers faced unprecedented impacts from drought in 2011, said John Robinson, AgriLife Extension cotton economist.
Robinson said in August USDA projected “a relatively low average cotton yield of 636 pounds per harvested acre” in addition to a “historically high abandonment of 52%.”
“Compared to five-year average yields and abandonment, 2011 represents a huge loss in potential production,” Robinson said. “Applied to USDA’s measure of 7.1 million planted cotton acres in Texas, and valued at their projected price of 95¢ per pound, this loss adds up to $1.8 billion.
“It’s that $1.8 billion is also the 10-year average total value of cotton lint and cottonseed production in Texas. So, Texas cotton growers lost as much market income in 2011 as they would normally make for an entire cotton crop.”
“Perhaps the most telling thing about the 2011 drought was that even irrigated farmers were not spared,” Miller said. “While most Texas irrigation systems work well in normal or even below normal rainfall, many irrigators found that water supplies were not able to provide all of the water requirements of the crop in the absence of any rain and excessive heat.
By mid-July, farmers began to try to stop (economic) losses, dedicating all of their water supplies to a reduced amount of acres as water demand from the crops was higher than their ability to supply it.”
The following is a list of economic drought losses from 1998 through 2011 compiled by AgriLife Extension economists:
- 2011– $5.2 billion
- 2009 – $3.6 billion
- 2008 – $1.4 billion
- 2006 – $4.1 billion
- 2002 – $316 million
- 2000 – $1.1 billion
- 1999 – $223 million
- 1998 – $2.4 billion
Guitar Auction Sets a Record with Proceeds
Going to Support Missouri 4-H and FFA
The Missouri 4-H and FFA organizations will share the $12,500 earned from a guitar auction that took place Sunday night, Aug. 14, during the Country Gold Tour at the Missouri State Fair. Four Sedalia business owners made the generous contribution, setting a new record for both the State Fair auction and the concert tour, which is managed by Leroy Van Dyke and his wife, Gladys. The guitar was signed by Van Dyke and seven country artists appearing in the concert.
Mike Brown, owner of B&P Excavating, and Gary McMullin, owner of W&M Welding, won the autographed guitar with a bid of $6,000. They donated the guitar back for a second round of bidding, which closed with Ron Ditzfeld, owner of Ditzfeld Transfer Inc., and Don Weaver, owner of Don’s Towing, claiming the guitar with a $6,500 donation.
The youth organizations will use the money to finance statewide programs. Last year, the youth groups shared $5,000 in proceeds from the Missouri State Fair guitar auction. The Van Dykes said they provide this same auction opportunity during state fair performances throughout the country. Until Sunday, the South Dakota State Fair held the record set at $11,000 in 2006.
An estimated 4,000 4-H and FFA youth representing nearly all Missouri counties are involved at this year’s Missouri State Fair, which continues in Sedalia through Aug. 21. Visit www.mostatefair.com for information on daily highlights and schedules.
South Texas Agriculture: $1.6 Billion Industry
in Four-county Area and Growing
Despite adversities, South Texas agriculture has an economic impact of $1.6 billion and is poised to expand to help feed and fuel the world well into the future, according to a new study by a Texas AgriLife Extension Service agricultural economist.
“Drought, urbanization and low market prices have taken their toll, but agriculture in South Texas continues to grow and the outlook is promising,” said Luis Ribera, an economist at the Texas AgriLife Research and Extension Center in Weslaco.
In the four-county Lower Rio Grande Valley, ag production has grown steadily in the past decade, providing income not only to growers, but the entire economy.
“All sectors of agriculture here have shown increases,” Ribera said. “The direct value, or what’s called farm gate receipts, has now reached $732 million annually. Growers spread that money around, creating a yearly economic impact of $1.6 billion in just this four-county area.”
A few other areas of the state produce more, but at Number 8, the Valley remains among the top regional producers. And in a good year, the race could get closer, he said.
“We’re running neck-and-neck with three other areas: the Coastal Bend, the southeast and the north. Individually, Hidalgo and Cameron counties are ranked seventh and 24th among the 254 counties in the state, while Willacy and Starr counties are among the top 85 counties. So the Valley ranks among the top producers in one of the country’s richest agricultural producing states.”
At almost $19.2 billion, Texas ranks third in the nation in annual ag cash receipts, behind California ($36.2 billion) and Iowa ($24.75 billion).
“In 2007, Texas fell from No. 2 in the country to No. 3, and we’ve been there ever since, but that type of income certainly qualifies us as an agricultural state; it’s still a very important industry in our economy,” he said.
The study shows the top Texas ag commodities include beef, 33%; feed crops, 15%; and miscellaneous crops made up mostly of nursery sales, 11%. Cotton comes in fourth at almost 9%, or $2 billion.
“The nursery business is especially healthy in Texas,” Ribera said. “New and used homes use lots of sod, palm trees and a huge variety of landscape plants.”
The commodities that keep South Texas ag humming include beef, vegetables, nurseries and ecotourism, the study shows.
“Investors look at trends when deciding where to put their money,” Ribera said. “And the trends for South Texas show the value and demand of crop production growing.”
Projections show that by 2050, the world’s population will grow to 9.2 billion people, Ribera said. “Those people have to eat, so those projections translate into opportunities in agriculture because we’re talking about more people with more money in developing nations like China and India. Purchasing power will increase and with more wealth, people tend to buy food first.”
Texas, and especially South Texas, is uniquely qualified to compete with other states like California for those food sales.
“We have a competitive edge to feed the world because right now we have the necessary water, land, climate and friendlier environmental regulations,” he said.
Ribera cites a study that compares the regulatory costs of growing citrus in Texas and California.
“When you add up training compliance, air and water quality requirements, pesticide regulations and others, California growers spend $216.19 per acre while Texas growers spend only $44 per acre.”
There are also huge opportunities in producing biofuels in South Texas as opposed to elsewhere, Ribera said.
“By 2022, according to the Energy Independence and Security Act of 2007, this country must produce 36 billion gallons of renewable biofuels per year,” he said. “We’re ideally situated to contribute to that effort, thanks to our subtropical climate that allows us to produce biomass year round.”
The area is also poised to produce fuel from microalgae because of its proximity to the Gulf of Mexico and the potential use of abundant marginal land that would not compete with land used for conventional agriculture, he said.
“It won’t be easy; there are lots of challenges,” Ribera said. “But investments into research to increase production here would be money well spent. According to a recent study at the University of California-Davis, for every dollar spent on agricultural research and extension, society gets $32 in return. Not a bad investment.”
National Forum to Focus on Antibiotic
Use in Food Animal Production
The use of antibiotics in the production of food animals elicits polarizing opinions across the media today as consumers become more aware and interested in the way their food is produced. While livestock producers have realized that significant animal illness can be avoided by the use of antibiotics, consumers are being told that any use of antibiotics leads to a lower effectiveness of antibiotics in humans.
Although there have been several debates and discussions on this issue, the National Institute for Animal Agriculture (NIAA) is planning a national forum in which experts in animal agriculture, researchers in the area of livestock health, and experts in human health will come together to have a dialogue about the use of antibiotics in the sustainable production of food.
“There is significant confusion regarding the use and potential effects of the use of antibiotics in food animal production,” states Leonard Bull, past NIAA chairman and leader of the forum planning committee. “This dialogue will provide the most up-to-date information on the research that has been done on the issue, what the science really means, and what further research may be needed.”
Participants in the forum will have the opportunity to hear from the research leaders and experts and join in the dialogue. “As is the case in all NIAA forums, it is important that members of the audience have the opportunity to ask questions of the panels and participate in the discussion,” says Bull.
The forum, titled “Antibiotic Use in Food Animals: A Dialogue for a Common Purpose,” is scheduled to be at the Hotel InterContinental O'Hare in Chicago, Ill., Oct. 26-27. It immediately follows the 2011 Food System Summit, hosted by the Center for Food Integrity, which is being held at the same venue.
Registration is open to anyone interested in this important issue. The registration fee is $295, with discounts for early registration and for NIAA members. In addition, a special forum rate for lodging at the InterContinental is available to attendees.
More information is available at www.animalagriculture.org. Individuals are also welcome to call NIAA at 719-538-8843 for additional information.
Beef and Livestock Pavilion Returns to World Ag Expo 2012
For the second year, World Ag Expo will be home to a 30,000 square foot pavilion dedicated to beef and livestock. The pavilion will include a live demonstration area where exhibitors can showcase their new technology in the beef and livestock industries.
“We had a great response to this year’s Beef and Livestock Pavilion, and look forward to an even better pavilion in 2012,” said Patty Colson, 2012 World Ag Expo chair. “We’ve had an increase in beef and livestock producers attending our show, and this pavilion is one way we’re working to reach all of the farmers and ranchers who attend World Ag Expo.”
An increase in attendance of beef producers sparked World Ag Expo officials to dedicate a pavilion to meet the demands of the beef and livestock community. The pavilion, located in the southwest corner of the show grounds, will feature seminars, demonstrations and businesses serving the needs of beef and livestock producers.
Demonstrations and seminars will be featured in the pavilion each day of World Ag Expo, February 14-16, 2012. A seminar by Gustavo Cruz, University of California–Davis (UC–Davis), will discuss the difference in performance, carcass traits, meat quality and profitability when finishing cattle on grass vs. grain. A presentation about diagnostics of udder and correct scan and imagery will be presented by John Openshaw, an ultrasound practitioner. Also featured in the pavilion will be a demonstration about cattle dog fundamentals and techniques by Blaine Ketscher and Ryan Pascoe of Hearst Ranch. For those interested in learning about low stress cattle handling, Jon Mollhagen, Moly Mfg., will demonstrate the use of an FZA cattle system with a silencer hydraulic squeeze chute.
Any company interested in exhibiting in the Beef and Livestock Pavilion should contact Julia at 559-688-1030 or email Julia@farmshow.org.
Editor’s Note: The articles used within this site represent a mixture of copyrights. If you would like to reprint or repost an article, you must first request permission of Angus Productions Inc. (API) by contacting the editor at 816-383-5200; 3201 Frederick Ave., Saint Joseph, MO 64506. API claims copyright to this web site as presented. We welcome educational venues and cattlemen to link to this site as a service to their audience.