Even though 2000 was plagued with drought conditions and unfavorable market
pricing for many Delta farmers, agricultural leaders are optimistic about 2001.
In October, the Senate gave final congressional approval to a $78 billion
farm bill, which provided $3.6 billion in disaster assistance and other
election-year aid to farmers. In the bill, more than $2 billion in federal
aid was earmarked for farmers who suffered crop losses in excess of 35% of
their historic yield to drought this year, with compensation possible as
early as the first quarter of 2001.
“It will go a long way in keeping many farmers on their feet and getting
ready to go again next year,” says Sen. Thad Cochran.
In the bill, federal lawmakers also voted to relax the 38-year-old trade
embargo against Cuba.  “Anytime we can improve our markets, it’s going to
help everybody,” says Kenneth Hood, a farmer from Perthshire, and president
of the Delta Council. “Of course, it’ll probably help some crops more than
others. But it’s a plus for the year 2000.”
Even though the sale of food to Cuba would be allowed with the passage of
the bill, it bars the federal government or U.S. banks from financing the
shipments.
“Anytime there is a change in legislation, there are parameters that have to
be redefined, and I think they will redefine it so that it works as an
advantage, not a disadvantage,” Hood says.
Hood, who farms cotton, soybeans, wheat, and grain sorghum, with about 70%
irrigated crops, says the pricing structure was a top concern this year.
“The weather is something the farmer learns to cope with to the best of his
ability, and one of those is irrigation, but the thing that really bothers
me about FY2000 is our pricing structure,” he says.”When you have a year
where yields are just average, and you take a double whammy because prices
are lower than they should be to service the debt load and production cost
load that most farmers have, it’s tough. Then, on top of that, a year like
this one where the quality of our products were less than we were
anticipating, we take a double lick ­ we’re getting a lower price because of
the markets and because of the quality of crops due to weather conditions.”
In 2001, Hood is looking for better weather and better yields.
“Hopefully, the net cash income will be better in FY2001,” he says.”It will
be a surmountable obstacle for farmers because of the increase in fuel
prices and other production-related costs, but we’ll be in a cost squeeze
situation probably more severe in 2001. I don’t mean to paint a picture of
doom and gloom, but we just have to hope for better yields.” Farmers are
groping for answers on what to do about yields in 2001, says Mike
Sturdivant, Jr., a Glendora farmer and Federal Reserve Board member.
“It’s nice having a strong economy, but the strong dollar really hurts us
when we try to export our crops,” he says.”It’s tough on the farmer, trying
to get a higher price for his product, and get away from the government,
which is what we all want to do. We don’t want to be dependant. But it’s
tough when every time there’s a reduction, the offtake domestically ­
because of disaster or drought-related problems around the country ­ seems
to spur a corresponding offtake in the demand because of the export picture
­ not being able to sell overseas. That, coupled with trying to decide what
we’re going to do about a new farm program in the future is going to be very
key as to how farming and agriculture proceeds down the road.”
With the recent presidential election being so close, Sturdivant sees it as
a sign to not make sweeping changes, he says.
“By the same token, because of the closeness of the race, and because of the
closeness of the numbers of the bodies of the House and the Senate, there
will have to be a lot of bipartisan working together between congressmen and
senators. I don’t think much will get done without both sides agreeing to it
on the front end.”
Fred Cooke, economist for the Delta Research and Extension Center in
Stoneville, says the only field crop that didn’t suffer terribly this year
was rice.
“The rice yields were a little higher than average, but you can’t away from
the fact that it was probably one of the worst weather regimes we could have
had,” Cooke says.
Cotton, the biggest crop in the Delta, had “a tremendous amount of bad
grade,” Cooke says.
“Even though there was an apparent strengthening of price, such a high
proportion of the crop had shorter staples, lower grades, particularly as it
related to spots, and terrible Œmicronare,’ which refers to the diameter of
the fiber and affects spinning quality,” Cooke says. “The actual prices
farmers received were lower than we were afraid they were going to be. If
the price of cotton hadn’t kicked in, things would have been a lot worse. I
thought we were going to get anywhere from 55 cents to 58 cents, but from
conversations I hear from farmers because of these micronare and staple
problems, they’re looking at 50 cents to 52 cents.”
The lack of subsoil moisture is a potential problem for next year’s crops,
Cooke says.
“If we don’t get normal or above normal rainfall this winter, it may not
make any sense to put seeds in the ground,” Cooke says. “Last month, farmers
were talking about getting five inches of rain, but with no standing water
in the fields. That’s because the ground is so dry. To some degree, most
crops, particularly cotton, are highly dependant on subsoil moisture. For
the past two years, we’ve had drought conditions, and winter rainfall is
what recharges subsoil moisture. We’ve got to have some recharge, or we
haven’t a prayer for next year, regardless of irrigated crops. We could
stand a modest flood.”
Cooke says even though, in the Delta, approximately 35% of cotton crops are
irrigated, and approximately 40% to 45% of all soybean crops are irrigated,
most cotton farmers use pivot irrigation.
“Pivot irrigation helps, but yields are still slow because pivots cannot
give enough water under these circumstances to let the crop perform
normally,” he says.
Crop insurance looks favorable for farmers, Cooke says.
“There’s nothing that says we can’t have anther year like this one, and the
availability of crop insurance is critical for the survival of our farmers,”
Cooke says.
Henry Gantz, president of The Catfish Institute in Belzoni, says 2000 was a
good year for Delta catfish farmers.
“Feed prices were historically low, and at one point or two, we had the
highest pond bank prices that we’d ever had, which gave us a good margin,”
Gantz says. “Even though the gross margin was probably higher than years
past, our expenses were up, too. We had the hot summer, which meant guys had
to run the paddlewheels more than normal, and electricity was expensive
because of high fuel prices.”
Even though the farmer and feed sides of the catfish industry had a good
year, the processors were still being pinched, Gantz says.
“The farmers are optimistic about 2001. I’m optimistic. I just wish there
was someway to help the processors increase their margins,” he says. “Like
any industry, there are storm clouds over the horizon, but it wouldn’t be a
normal year if we didn’t have that. Catfish farmers are resilient.”
Pond construction in the Mississippi continues to steadily expand, while
catfish farmers in Arkansas and Alabama are expanding ponds “dramatically,”
Gantz says.
Sam A. Newsom of Zeneca Ag Products says 2000 would be remembered mostly for
the high temperature and lack of rain.
“It should also be remembered as the year we learned how to put to use the
new technology associated with the GMO crops that we are growing,” Newsom
says.
“Roundup Ready cotton and soybeans really worked well, even in a tough year
because of the opportunity to reduce production cost and eliminate unneeded
tillage.  It was very interesting to see that, even coming out of a tough
year, many growers spent more time this fall Œfarming’ than they did during
the year.  $1-plus per gallon diesel fuel cannot deter the natural urge of
many growers to plow and till for no real benefit.  If tillage is not
reduced or eliminated with the use of the new technology available to
growers today many of the real benefits will not be realized.”