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Ag and Energy March 26, 2009  RSS feed


Rain too little, too late for some farmers

By Robert Burns Texas AgriLife Service

Although recent rains went a long way to alleviate the drought, crops such as wheat are still behind, and most areas need more rain to raise soil moisture to normal levels, according to Texas AgriLife Extension Service personnel.

Most of the state received 2-inches or less, but parts of Limestone County got more than 4 inches. Groesbeck received more than 3 inches.

But because of the combined punches of drought and economic downturn, many agricultural sectors will continue to suffer, rain or no rain. Texas dairies are a good example, said Dr. Todd Bilby, AgriLife Extension dairy specialist based in Stephenville.

Dairy operators in the area are probably losing $3 to $4 per cow per day, he said.

"In some cases, it can be as much as $5 per head per day," he said. "Unfortunately, we will probably see some operators go out of business this year."

Why are dairies losing money while the price of a gallon of milk in the supermarket still remains high? It's a combination of factors, Bilby said, factors upon which greening-up pastures will have little affect as most are confined feeding operations.

"Most of these guys locked in feed prices for months in advance, and then the price they receive for milk went down by almost half," he said.

Dairy farm milk prices dropped for several reasons, but a primary one was that exports dropped significantly due to less demand. The drop in exports was due to lower demand worldwide because of the global recession, increased production by New Zealand, and the European Union directly subsidizing their exports, he said.

Meanwhile milk prices at the grocery store remain high because retailers are trying to recoup past losses.

"The retailers always seem to come out ahead on these deals while the farmers suffer," Bilby said.

The following summaries were compiled by AgriLife Extension district reporters this week:

CENTRAL: Most counties received greatly needed rain. With little runoff, stock tanks remained low. Spring and winter annual plants responded quickly. The planting of corn and milo was nearly complete with only a few producers holding back until after the rain. Wheat looked fair, and it was hoped the rain would result in decent yields despite the dry fall and winter.

EAST: The region received much needed rain, as much as 6 inches in some areas. The moisture should reduce the risk of wildfires. However, San Augustine County remained in desperate need of moisture. Feral hog activity was up. Trinity County had problems with skunks and deer moving close to and on the roads. Livestock were in fair to good condition.

NORTH: Soil moisture ranged from adequate to surplus as from 1.75 to 5 inches rain fell throughout the region. Ponds caught much needed runoff, and the ground was saturated in some areas. The rain helped the small grain fields and encouraged farmers and ranchers. The winter wheat was in fair to good condition. The rain halted land preparation and planting. Cooler temperatures slowed grass growth and may have caused some damage to the peach trees. Heavy supplemental feeding of livestock continued, and hay supplies were rapidly diminishing. However, some producers reported that their cattle were eating less hay as conditions improve. Rangeland and pastures were in poor to fair condition, but the winter pastures were already showing some benefit from the rain.

WEST CENTRAL: A cold front brought much needed rain to many areas. The rain came in very slowly and most of it soaked in with little run off which raised soil-moisturelevels. Temperatures were in the mid to lower 30s and 40s most of the week. Small grains began to head out. Spring planting of hay crops was expected to resume soon. Range and pastures showed improvement thanks to the rain, but livestock herd liquidations continued.