An Overview of Agriculture in North America 2014: Part 2

What to Expect from the 2014 Harvest in North America

In our last blog, we looked at the current state of agriculture in North America—and the takeaway was thanks to both harsh weather and lower prices, things remain in flux. To try to bring some clarity to the situation, we want to fill you in on what we can expect from the 2014 North American harvest.

·         As of April 2014, the USDA reported that 19 percent of U.S. crops have been planted, but it varies from state to state. For example, Missouri farmers are at 47 percent while Iowa’s are only at 15 percent. There is a chance that planters will fall farther behind thanks to wet weather, but historically, the later a crop is planted, the less likely it will end up robust.

·         In what is a vicious cycle, if commodity prices remain low, then farmers will plant fewer acres. This in turn will lower the yield, but then futures prices will rise; this seems to be what 2014 will produce.

·         As anyone knows from watching their local weather report, it is next to impossible to predict the future. Despite this inherent difficulty, some believe we might be in for a wild ride this summer. This includes the possibility of a major El Nino that would bring North America a mix of unpredictable weather.

·         Finally, there is the level of farm equipment sales. After a robust 2013, experts are expecting sales to be flat or lower in 2014.

In the end, it is difficult to predict a harvest this far out, but we hope that this blog is of some help in decoding what to expect from the 2014 harvest in North America. For more information on our conveyor belt solutions for agriculture, head over to our website.

An Overview of Agriculture in North America 2014: Part 1

The Current State of Agriculture in North America

People who make their living in the agricultural field know one thing is certain: No two years are ever exactly alike because the number of factors that define a year’s planting and harvest season is overwhelming. 

Because our conveyor belting solutions are prominently used in North American agriculture, we wanted to breakdown the state of the industry and harvest in a two-part blog series. To begin, let’s get a feel for where agriculture is at a few months into 2014. Below, we’ve broken down the industry by factors and topics.

Weather

This past winter was one for the record books. In the western parts of North America, drought conditions ruled the day. Currently, 100 percent of California is suffering from some level of drought, but conversely, much of the rest of North America was slammed by an extended and harsh winter that saw both record snowfall and unmatched low temperatures. As you might imagine, any type of extreme weather condition will directly impact both planting and fieldwork.

Crop Progress and Condition

As we mentioned before, no two years are alike, and this is also the case when it comes to states and regions. One helpful tool, at least for the U.S., is the USDA’s State Crop Progress and Condition website. This site allows you to get detailed reports on the current and past crop reports.

Current Prices and Equipment Sales

Though prices are currently lower than last year, the numbers coming in show that projected acres planted are significantly lower in corn and soybean. This is something to keep an eye on because it might shock prices down the road. The same goes for equipment sales as they are directly linked to prices and planting levels.

Overall, the current state of agriculture in North America is one of wait-and-see. Will prices stay low? Will the uneasy weather continue into the summer months? In our next blog, we look to answer these questions by taking a closer look at what the experts believe we can expect from the harvest season of 2014.