Spring Reveals Problems for Northeast Ohio Wine Industry

Photo Credit: The Wine Merchant

The snow has disappeared and many Ohioans are getting excited about sunny days and outdoor pursuits, while the agriculture industry is looking back at the effects of winter and preparing for the upcoming planting season.

As I discussed in an earlier blog, this winter had many negative effects on Ohio’s agriculture industry. In particular, freezing temperatures have greatly impacted Ohio’s wine and grape production.

According to Farm and Dairy, Northeast Ohio is in danger of losing its grape crop. The region may even receive a disaster declaration, which is a type of aid to help farmers recover after losses from natural disasters, according to the United States Department of Agriculture (USDA).

January started out with the polar vortex and below zero temperatures were recorded throughout Ohio. Quoted in the Columbus Dispatch, Gary Gao, an Ohio State University Extension specialist, estimated that European grape varieties have probably sustained 90 to 100 percent injury.

In Farm and Dairy, Nick Ferrante, of Ferrante Winery, said he doesn’t expect a grape crop in 2014.

“I’m hoping we don’t have trunk damage to the vines, but we probably will have some,” Ferrante said.

Donna Winchell, executive director of the Ohio Wine Producers Association, estimates that between 40 to 100 percent of the grape crop could be lost.

“The problem is that these are the grapes we are betting our national reputation on,” Winchell said.

Quoted in an article by the Wine Merchant, Winchell remembers walking through vineyards in 1994, the last time temperatures were this low.

“It was like walking through Rice Krispies,” she said. “You could hear them snap, crackle and pop. That was the cell structure of the vines exploding.”

Northeast Ohio is a huge producer of wine, with more than 1,300 acres of grape vineyards and 20 wineries, according to the Northeast Ohio Grape and Wine Economic Impact Study. In a 2007 survey by Orbitz, Northeast Ohio was ranked the 6^th best wine destination in the United States.

Potential losses in the grape crop will have a large impact on the Ohio economy. The grape crop and subsequent wine production are valued at $6 million and $20 million, respectively.

One thing is certain, however. The price of Ohio wines will not go up this year because of a good 2013 season, which resulted in a wine surplus. However, the future of the 2014 and 2015 seasons are uncertain. 

How has the weather affected your crops this winter?

Polar Vortex Affects Ohio Crops and Livestock

Image courtesy of Bill Griffin 

Months ago, the Farmer’s Almanac predicted a “frigid winter with bitter cold and heavy snow,” but this season is turning out to be rougher than expected. Above average snowfall and extreme temperatures are causing problems for many farmers across Ohio.

During the week of Jan. 26, the minimum temperature across Ohio reached 11 below zero, as reported in the United States Department of Agriculture’s (USDA) Weekly Weather and Crop Bulletin. This is a 10-degree departure from average minimum temperatures.

According to the Columbus Dispatch, much of Ohio’s wine-grape, peach and blackberry crops have been lost. Fruit buds, bushes, vines and trees have sustained damage, although the exact magnitude of the damage is unknown. 

“The viniferous or European grape varieties have probably sustained 90 to 100 percent injury to their primary buds,” said Gary Gao, an Ohio State University Extension specialist.

Dick Jensen, owner of the Flying J Wellness Farm, said his spinach and kale crops stopped growing.

“Last year, we had beautiful spinach, kale and arugula all winter,” Jensen said. “This year, everything pretty much died.”

In addition to freezing crops, the cold streak also disrupted grain and livestock shipments across the United States. Frozen troughs have affected milk production on Stacy Atherton’s family owned Shipley Farms in Newark, Ohio.

“We were down on milk quite a bit, two pounds per cow,” Atherton said. That added up to a “1,000 pounds’ difference from what we normally ship in a day.”

The extreme cold affected many crops and livestock alike. How has the extreme cold affected your farm?

Rain may affect grain forecast

Waterlogged fields are causing Midwest grain farmers much angst. Excessive moisture in fields is either jeopardizing the germination of planted seeds or is preventing planting.

“Farms from the Ohio Valley north throughout much of Ohio…have had flooding and above-normal rainfall in the past month but the Ohio Valley has been hardest hit,” said Cincinnati Weather Examiner Rich Apuzzo.

One farmer’s field has literally turned into a pond in Zanesville — It has carp swimming in it, as reported in a The Republic story.

According to a Coshocton Tribune story, “One cubic foot of water weighs more than 62 pounds and there are hundreds of tons of water laying on the fields.” This results in compacted roots to limit yield potential.

However, an Evansville Press & Courier story noted that flooding, in one way, is beneficial, “Nutrient-rich silt deposited by the flood water can often help reduce the amount of fertilizer.”

The optimum planting dates for corn in Ohio are from April 20 to May 10. To date, 1 percent of Ohio’s corn crop is planted, which is 38 percent less than the past year and 13 percent less than the five-year average. Typically, 15 percent of the corn crop is in the ground about this time of the year.

Corn consumption is projected to be near 13.25 billion bushels during the 2011-2012 marketing year. The USDA and others are predicting a national yield of 162 bushels per acre on a projected 92.2 million acres with 87 million acres being harvested for grain.

Farmers are considering alternative planting strategies to circumvent potential weather-induced losses.


Delayed Planting Strategies:

• Considering a shorter-season hybrid seed
• Foregoing tilling or practice decrease tillage
• Using an increased seed rate
• Using nitrogen later or considering nitrogen alternatives

Though the exact timing of planting is still unknown, one thing is for certain. With commodity prices significantly increased compared to the past spring, U.S. farmers plan to plant 3.99 million, or 4.5 percent, more corn acres than last year, according to the Prospective Plantings report released by the USDA National Agricultural Statistics Service.

Soybeans have a later plant date than corn — early May — and soybean farmers are also monitoring their fields and using the same assessors to gauge planting decisions. Depending on the ability to still plant a decent corn crop, corn farmers may opt to plant more soybeans this year. State farmers will be finalizing planting plans in the coming days.

Soybean 2011-2012 consumption is projected near 3.33 billion bushels, with a yield near the trend value of 43 bushels per acre on about 76.4 million acres.

Well-drained fields are expected to cope nicely, especially if June is dry. This is good news for Ohio wheat farmers. Ohio’s already-planted winter wheat crop reportedly survived the season in better shape than other states. USDA rates more than 70 percent of Ohio’s wheat in fair to good condition for harvest in July.

The Prospective Plantings report projects a 10-cent reduced average price received by wheat producers for this market year, ranging from $5.50 to $5.70 per bushel.

“Farm prices continue to be reported well below prevailing cash market bids, indicating that farmers priced a substantial portion of this year’s crop well ahead of delivery,” stated the report.

Of course, the ag industry will experience a lion’s share of the blame of potential food-cost increases because of yield loss causing food shortages. Farmers and other agribusiness members should be ready to provide fact-based responses to the multiple factors of food costs such as increases in oil prices and commodity market speculation.

It’s important to note that the 2010 planting season was also delayed, though not to this extent, and still turned out a record corn crop. Most of our farmers are seasoned pros with years of experience and knowledge working on their behalf.

For now, farmers are forced to acknowledge the adage, “Patience is a virtue.”

When are you or people who you know entering the fields? What are you doing differently this year?

Photo obtained from: www.ipm.iastate.edu

Farmers faced with important crop insurance decisions

Farmers need to make some important decisions in these last few weeks leading up to the March 15 crop insurance deadline.

The crops impacted by this deadline include corn, soybeans, grain sorghum, green peas, barley, dry beans, forage seeding, oats, popcorn, cabbage, mint, sweet corn, sugar beets, tomatoes, potatoes, processing beans and processing pumpkins.

For most farmers, crop insurance affects those who want to:

• Purchase crop insurance for their spring-planted crops
• Make a change to the crops that they have insured or to the level of their crops’ protection
• Change insurance providers
• Cancel a policy
  

According to an article in Ohio’s Country Journal, volatility is expected in the prices for corn, soybeans and their inputs and the weather is always an unknown. These risks, at the current high price levels, are tremendous.

“Prices are higher this year, the volatility in the markets is greater than ever and input prices are high, so it is really important to keep crop insurance at high levels, said Keith Summers, agent and broker at Leist Mercantile in Circleville. “With that, the cost of crop insurance is going to be higher as well. We’re seeing rates anywhere from 25 percent to 30 percent over last year.”

Along with the higher prices, the Risk Management Agency for the United States Department of Agriculture (USDA) is offering farmers a new crop insurance option for the 2011 crop year.

This new option for crop insurance is “WeatherBill,” which offers customized protection from the uncertainties of the weather, including:

• Drought throughout the growing season
• Excessive rainfall during key planning dates
• Cold weather throughout the season
• Heat stress during pollination
• Killing freeze before the harvest
• Rains that can delay harvest
  

WeatherBill coverage does not depend on insurance adjusters, but on the National Agricultural Statistics Service (NASS) weather data for a nationwide grid of 12-mile by 12-mile squares throughout the country. The insurance can be purchased by the acre within these grids.

This new crop insurance option, along with the higher prices, increases the need for farmers to meet with their crop insurance agent.

“There are a lot of dollars on the table this year and it is important for farmers to make sure they have the right coverage for their farm. Using crop insurance is a really good way to lock in some revenue,” said Summers.

For more information and a list of local crop insurance agents, farmers can visit www.rma.usda.gov/tools/agent.html.

Do you use crop insurance? Do you know a farmer who doesn’t use it? What do you think about the new insurance option, WeatherBill, which is available to farmers?

Photo obtained from: newinsured.com

The Farmers’ Almanac, is it better than your local weather personality?

Since 1818, the Farmers’ Almanac, most famous for it’s uncanny ability to accurately predict the weather, has been assisting farmers with everything from the best days to plant and fish to natural remedies to cure a cold.

In a recent article by the Christian Science Monitor, Chris Gaylord compared Punxsutawney Phil to the Farmers’ Almanac. He mentioned that maybe Punxsutawney Phil is more like the Farmers' Almanac because it predicts temperature trends for an entire year. A survey by the Weather Underground shows varying reports on the annual guide – ranging from 50 to 80 percent accuracy. Better than a groundhog.

In the month of February, the United States (especially the Northeast) was dumped on by snow, snow and more snow, just like the Farmers’ Almanac predicted.

“For the Middle Atlantic and Northeast States, we are predicting a major snow storm in mid-February; possibly even blizzard conditions.”

Whitman, Mass. Highway Superintendent Roger Stolte, said “No one can predict – except maybe the Farmer’s Almanac – how much snow we’re going to get each year,” in a recent article discussing how costly snow removal has been for their town this year.

So will farmers have an easier spring? According to the almanac, “Spring showers will be abundant, and there is threat of an active tornado season.” With a rough winter, will farmers be able to get their crops in on time? When will they catch a break? The almanac is calling for “near-normal summer precipitation.” Which should give farmers the break they deserve.

How does the Farmer’s Almanac predict the weather so accurately? The editors base their calculations on numerous factors such as sunspots, moon phases and other astronomical conditions. But editors do admit, they are not perfect.

“Although many longtime Almanac followers claim that our forecasts are 80 percent to 85 percent accurate, it should be noted that weather forecasting still remains an inexact science. Therefore, our forecasts may sometimes be imperfect. If you are planning an outdoor event, we recommend that you also check forecasts from local sources.”

But the almanac predicts more than just the weather. It includes money-saving tips, recipes for homemade dishes and what days are best to take vacation.

The majority of editions of the publication include articles advocating for a change in some accepted social practices. Articles such as:

• “How Much Daylight Are We Really Saving” a recommendation for a revised Daylight Saving Time schedule (2007)
• “A Cure for Doctors’ Office Delays” an article demanding more prompt medical service and calling for a “Patients’ Bill of Rights” (1996)
• “Pennies Make No Sense” a story which sought to eliminate the penny, and to permanently replace the dollar bill with less costly-to-produce dollar coins (1989)

For 2010, the publication has included tips about how to save a buck with “Keep Frugal Living a Priority” and how to “go green” with “Dollars and Sense of Going Green.”

In 2007, Farmers’ Almanac took its readers online by re-launching its original 1997 Web site, FarmersAlmanac.com. This interactive Web site features videos, weather predictions, recipes and much more.

How often do you refer to the Farmers’ Almanac to help you with your planting and harvesting decisions? Do you feel that this publication is a useful tool?







Bad Weather is making things tougher for farmers

From floods in Iowa and across the Midwest to the droughts in California, American farmers cannot seem to catch a break.

The floods in Iowa have affected 83 of the 99 counties with farmland losses in the billions of dollars. Grain prices may continue to rise, due in part to the flooding. It is not uncommon for food prices to spike after bad weather. Typically, these increases do not last long.

The bad weather has devastated some farmers to the point where they do not want to continue to farm the land. Farmers such as Gerald Jenkins, of the Ursa Farmer Cooperative, in Meyer, Ill., are not going to replant this season, and Jenkins may not plant in the future. Ron Lanz, a farmer from Iowa, lost more than 800 hogs due to flooding. He said he has considered giving up farming altogether.

While one part of the country wants the rain to stop, the other part is praying for rain to come. California is on the verge of a two-year drought, which is costing farmer Todd Diedrich up to 750 acres worth roughly $3 million in lost revenue. Many farmers, including Diedrich, are not sure their farm will survive another year like this.

California Gov. Arnold Schwarzenegger is pushing the state Legislature to approve an $11.9 billion bond for water management, offering relief to those affected by this drought.

Consumers also need to prepare themselves for the aftershock of this bad weather. Fuel and food prices could be affected due to farmers not being able to produce a good crop.

Stephen Schork editor of the Schork Report, a newsletter that focuses on energy, stated that the bad weather could not have come at a worse time. Consumers are already paying over $4 a gallon at the gas pump and food prices have been predicted to go up by at least 7 percent, putting a big strain on America’s wallet.

With this bad weather, food and fuel prices could continue to rise. The question farmers and consumers now have to ask: What is going to happen next?