Farm
bill provisions, other encouraging signs create optimism,
but weather remains a big concern
Resilience,
patience keeps the Delta farmer strong
While
2002 began as a year of high expectations for Delta farmers,
later developments muted the initial optimism. The much-anticipated
passing of a new farm bill, and indications of a good planting
season, generated a lot of positive predictions for the
year. Then came the fall—and the rain—and another
year ended somewhat dismally for the area’s agricultural
industry.
Not surprisingly then, those contacted for this overview
of the outlook for 2003 gave generally cautious responses.
The negatives linger—as 2002 all too clearly demonstrated,
Delta agribusiness still faces many challenges, including
some which are outside the farmers’ control.
Still, there are certainly positives. As many point out,
the farm bill now in place offers farmers a higher level
of protection and some good incentives to make more aggressive
plans. Farmers appear to have some strong advocates in Washington,
and efforts to address trade issues are cited as a good
sign. Crops which had once been considered secondary in
the Delta have shown real potential.
Summarizing the past year, Dr. Lester Spell, Jr., Mississippi
Commissioner of Agriculture and Commerce, says, “Favorable
spring and summer weather was negated by the fall, especially
the two hurricanes which brought so much rain ashore,”
says Spell. “The one bright spot was corn—most
of our corn was made and harvested before the fall rains.
Statewide, production of corn was at record levels.
“Looking at 2003, it’s important to point out
that the Delta represents over fifty percent of the state’s
production of cotton, corn, and soybeans, and virtually
all of the rice grown in Mississippi,” he continues.
“Those levels should remain similar this year.”
Grower Mike Sturdivant of Due West Farms speaks of a cycle
in the Delta these days. “You know, you hear horror
stories about farmers having to sell out, but then you hear
about someone else coming in, leasing the land, and farming
it again,” he comments.
Sturdivant sees an increase in the planting of corn, on
land that had been predominantly cotton acreage—particularly,
marginal land. In part, he attributes this to the higher
yields and less risk associated with corn.
Bowen Flowers, of Omega Plantation in Clarksdale, comments
as well on the trend toward corn. “It’s easier
and cheaper to grow,” he comments. Flowers’
crops include cotton, corn, soybeans, and rice, and he says
his own acreage mix will remain about the same this year.
In the wake of a wet fall, he says a good deal more land
preparation is necessary. Citing the farm bill as a positive
factor in 2003, he adds, “I’m hopeful that things
will get better.”
Stating that he “takes each new year optimistically”,
rice and soybean grower Ronnie Aguzzi of Aguzzi Farms also
reports that a little more land preparation is necessary
this year because of the wet fall. Beyond that, he says,
“We’ll generally do about the same as in the
past.”
Asked about the farm bill, Aguzzi replies, “It’s
probably a little too soon to tell how much good it will
do. I’m certainly glad we’ve got one, and it
will allow some people to continue farming for a more years,
but I think we’ll have to wait and see how good it
is long-term.”
Cotton is the major crop for Kenneth Hood at family-owned
Perthshire Farms. He is also active in ginning and farm
equipment. Hood expresses reservations about the agribusiness
outlook.
“In addition to the continuing low commodity prices,
we fought adverse weather conditions last season,”
he says. “Lower yields and lower quality have compounded
farmers’ problems. It’s affected my business
all around—production costs and certainly insurance
costs are up. Ginning has been affected by increased fuel
and electricity costs. And all that means farm equipment
sales are down.
“On the positive side, we’ve seen the efforts
of the National Cotton Council and other associations to
get a farm bill that gives us more protection during these
years of low prices. Hopefully, this won’t change,
although right now there seems to be a move among some in
Congress to make changes.”
Hood is also encouraged by the President’s stance
on trade, and expresses the hope that a good trade agreement
will benefit American agribusiness. “We need new tariffs
and quotas to help U. S. growers,” he says. “It’s
time for ag to stop being the whipping boy when it comes
to trade.”
“The key to the year ahead, and indeed to the next
five years, is the farm bill,” says Staplecotn President
Woods Eastland. Calling the current bill much more favorable
than past programs, Eastland says that not only is it good
for producers, but for the agribusiness infrastructure.
“The bill is very good for the industry overall—the
chemicals people, the processors, storage, etc.
“Even though payments are detached from production,
the economic incentives of the programs are a plus, and
should help encourage producers to plant at least 85% of
their base acres. Overall, the farm bill puts a floor under
the ag economy that the Delta hasn’t had in several
years.”
“We anticipate acreage planted to stay about the same
in 2003, or perhaps be slightly up,” says Randy Dismukes,
Senior Vice President of Delta and Pine Land Company. “If
acreage is indeed similar, then we think this will be a
reasonably good year.”
Dismukes adds that D & PL is excited about its new products,
such as DP 555 BG/RR, which combines high yield potential,
solid fiber quality history, and Bollgard and Roundup Ready
technologies in a stacked configuration.
Stoneville Pedigreed Seed Co., headquartered in Memphis,
TN, has been breeding cotton since 1922, and was a pioneer
in commercializing genetically engineered seed products.
Danny Rogers, Director of U. S. Sales and Marketing, says
the company is excited about 2003.
“We’re coming off a year where our varieties
performed very well in the mid-South,” he says. “One
new product which we feel provides a lot of opportunity
is our ST 5599BR. It’s a stacked Bollgard/Roundup
Ready variety with high yield potential, premium fiber qualities,
and excellent tolerance to the Fusarium/root-knot-nematode
complex.
“Last year’s harsh weather conditions, which
affected both planting and harvesting, presented cotton
growers with some major challenges to overcome,” Rogers
adds. “We have to hope for better conditions in 2003.
Still, the farm program in place for this year is a positive,
and cotton acreage will probably remain flat.
“The mid-South is going to plant cotton.”
As a manufacturer of farm machinery including liquid and
dry fertilizer equipment, cotton module builders, and cotton
carts, KBH Corporation’s success is directly linked
to growers’ success. “New technology is a challenge
to the industry,” says Buddy Bass, “what with
genetically engineered seed, new chemicals, new equipment,
etc. And it’s a challenge to us at KBH to determine
which changes should be made to our equipment to meet farmers’
needs. Farmers seem to be well educated on technology, and
we rely on our customers to keep us abreast of what’s
happening in the field.”
He adds that U. S. farmers are more directly affected by
world developments than many people realize. “It’s
truly a global market, and producers worldwide have the
same access to new technology,” he comments. “So
it becomes a global question as to who can produce crops
most efficiently.”
Cleveland’s K & D Associates is a design/construction
firm for grain handling, storage, and drying. In business
for over 30 years, the firm includes individual and corporate
farms, commercial elevator concerns, and public entities
like the river ports among its customers.
Dean Daniels reports that 2002 business was up some forty
percent over the previous couple of years. “Admittedly,
this was somewhat against the trends,” he comments,
“and for 2003 we’ll see perhaps a five to seven
percent increase. In 2002, our business was aided by the
changing of crop systems to more planting of other grains.
This, along with the influences of new technology and increased
yields, led to an increased need for storage and drying.”
He comments that legislators appear to realize the need
for continued support of agribusiness through government
programs, and this fosters a growing optimism. “If
the government continues to support ag, you have to be less
pessimistic.”
At brokerage firm Varner Brothers in Cleveland, Rogers Varner
also comments on the positive and negative factors that
influenced Delta crop production in the last year. “The
farm bill has certainly created a better situation for farmers,”
he says,” with higher payouts than ever before. But
in 2002, even with those generous payouts, yields were average
or below. So while the farmers can count on payments, they
still have to rely on Mother Nature for their yields.”
Reflecting on the Delta crop mix, Varner continues, “While
Delta grain yields can’t match the Midwest, for example,
we’ve done a pretty good job of ‘catch-up’
in recent years. Soybeans and corn are now money crops,
not just rotation crops.”
The relationship between commodity prices and the strength
of the dollar is also an issue, Varner adds. “We’ve
seen a six-year upward trend in the dollar,” he points
out. “When it trends higher, it tends to push commodity
prices down.
“Now that the dollar appears to be topping out, some
of the prices are rallying. They’re not high enough
yet, but the increases could be significant if the dollar’s
trend continues downward.”
Opportunities for agribusiness growth in Mississippi may
come from some less familiar sources. Benny Graves, with
the Mississippi Department of Agriculture and Commerce’s
Bureau of Plant Industry, is a specialist in niche crops.
He says small commodity crops, such as sweet potatoes, offer
some real potential to the area.
“The Mississippi Delta has ideal soil for sweet potatoes,”
he says. “It’s a labor and capital intensive
crop, but as we continue to develop the market, there are
some real opportunities.” Mississippi is already third
in the nation for sweet potato production, he points out.
Weather challenges are a big issue for all types of growers,
Graves agrees, but adds that labor is another continuing
problem. “More and more migrant workers are needed
these days, and their availability is being affected by
things such as homeland security issues.”
In a positive vein, he adds, “I am glad to see all
the exciting new crops in the Delta—such as nicotine-free
tobacco, and the infrastructure investment beyond just the
usual row crops. It bodes well for the area.”
Reflecting on both the challenges and the opportunities
which lay before the Delta farmer, Dr. Lester Spell says,
“In the last few years, there have been many challenges
due to situations which Delta businessmen could not control.
But the next few years should provide the opportunity to
take better control of our own destinies. The successful
farmer will be the one who is willing to try change.”
KBH’s Buddy Bass agrees that there are encouraging
signs. “I do see a lot of growers out there who are
successful,” he says. “They’re interested
in new ideas, and very much involved in ways to grow and
harvest their crops more efficiently.” DBJ
