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.
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"Great insights into the 2014 harvest trends! I didn’t realize how much weather could delay planting schedules. Fingers crossed for better conditions."
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"Low commodity prices really seem like a double-edged sword. Farmers plant less, yet the prices rise later—what a tricky cycle!"
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