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OHIO WEATHER

Dry Weather and Market Factors Impact Projected Farm Incomes

Dry Weather and Market Factors Impact Projected Farm Incomes


Ohio farmers are facing concerns over projected farm incomes for the current growing season due to a combination of unfavorable weather conditions and market factors. Cold temperatures and excessive precipitation delayed planting earlier this spring, while a lack of rain after crops were planted is causing anxiety among farmers.

The dry spell has prompted some farmers to replant soybeans, hoping to mitigate potential yield losses. With little rain in recent weeks, the need for timely precipitation is becoming critical. Farmers are closely monitoring the weather, as a prolonged dry spell could significantly impact crop health and yield.

The Dayton area, for example, experienced only 1.89 inches of precipitation in May, less than half the normal amount. The region has not received more than an inch of rain in the past 61 days. Total precipitation for the year is also notably low, the lowest since 2015.

Despite the challenging weather conditions, Ohio farmers have made progress in their planting efforts. According to the U.S. Department of Agriculture's Ohio Crop Weather Report, corn and soybean planting reached 89% and 87% respectively, exceeding the levels of the previous year.

However, while farmers deal with the weather, they are also bracing for a decline in farm income. The U.S. Department of Agriculture's Economic Research Service predicts a decrease in net farm income and net cash farm income for 2023 following two years of growth.

Lower corn and soybean prices are expected to contribute to the decline in farm income. Corn receipts are projected to fall by 4.5%, while soybean receipts are anticipated to decline by 8.1% due to lower expected prices. Total production expenses, including interest expenses and livestock/poultry purchases, are forecast to increase.

Farmers are closely monitoring market dynamics, including supply and demand, as they can significantly impact grain prices and overall farm profitability. Factors such as inflation, interest rates, and global stability, particularly in relation to soybean exports, are additional concerns for farmers.

As farmers navigate these challenges, they emphasize the importance of adapting to changing conditions, utilizing technology, and closely managing input costs. They remain hopeful that favorable weather conditions, improved market conditions, and effective cost management strategies will help mitigate the potential impact on farm incomes.

Despite the uncertainties, farmers understand that agriculture is inherently unpredictable, and they continue to rely on their experience and resilience to navigate the ever-changing landscape of farming.

 

Photo Credit: gettyimages-frankoppermann

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Categories: Ohio, Business, Weather

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