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Arkansas farmers say cost surge offsets price increasesJONESBORO, Ark. (AP)--Arkansas farmers have welcomed the higher prices that some commodities have been commanding, but growers say the increases have not been enough to offset higher costs and the effects of bad weather. Growers say they have paid more for fuel, fertilizer and other inputs. And heavy rains and flooding delayed planting by several weeks or made planting impossible in the spring. Into the summer, hurricanes Gustav and Ike passed over Arkansas. Gustav dropped heavy rain for days and caused some wind damage. Most of the damage from Ike came from strong winds. "Every crop farmers planted this year will be the most expensive crop they've ever planted," said Jason Kelley, extension service specialist for wheat and feed grains for the University of Arkansas Division of Agriculture. Arkansas crops were valued at $3.4 billion last year. Cooperative Extension Service agent Steve Culp of Craighead County said there are projections of fertilizer costing $1,000 per ton next year and that fuel prices remain high. Fertilizer is close to the $1,000-per-ton mark now, agriculture officials say. Growers who depend on loans at the start of each planting face an added uncertainty, considering the collapse on Wall Street. The government bailout is intended to make more money available for banks to loan, however it could be tougher to qualify for credit next growing season, officials said. The rice and cotton crops sustained the worst of the hurricane damage. Some cotton growers reported boll rot and rice growers reported lodging, which is when stalks are blown down, and shattering, which is when trains are blown from the plant. Lodged rice can be harvested, but it is a much slower and expensive procedure. Tropical Storm Fay and hurricanes Gustav and Ike also helped drive up already high fuel costs as many growers topped off their tanks to complete the irrigation season. Wind and drenching in their aftermath also flooded and otherwise damaged crops in the fields. Wind and rain from Gustav damaged fields mainly south of Interstate 40. Farms south of I-40 sustained the worst damage dealt by Ike. Cotton in the area is beginning to open, and extension agents said defoliants are being sprayed on area fields in anticipation of harvest. Yields are expected to be above average. Extension cotton verification coordinator Frank Groves said 2008 has been a more difficult year than any he remembers. Growers planted about 700,000 cotton acres this year, down from 860,000 in 2007, when the crop was valued at $461 million. "Much of our cotton got planted late. Typically, most cotton is planted in two weeks; this year, it stretched out over six weeks. The late-planted cotton is probably doing better than the earlier-planted cotton," which is more susceptible to recent weather problems, he said. Normal cotton harvest in Arkansas begins in mid-September and runs through mid-October. Many farmers also have rice, soybean and corn ready for harvest, making scheduling difficult. Growers expect to 1,125 pounds of cotton per acre this year, a little more than last year. The rice harvest has just begun, when more than a quarter of the crop is normally already in. Extension rice specialist Chuck Wilson says if conditions for harvesting are right, farmers should be in the fields instead of waiting for ideal moisture content. "We've had two major hurricanes and a substantial amount of rice down in the field. Gustav caused 30 to 40 percent lodging in southeast Arkansas, a substantial blow to yields," Wilson said. Arkansas farmers planted 1.35 million acres of rice this year, 2 percent more than last year. Farmers expect to harvest 7,200 pounds an acre, 70 pounds more than last year. Last year's crop was valued at $1.04 billion. Soybeans have made it through the summer with limited damage, said Jeremy Ross, extension soybean specialist. "Considering the late planting start, seed quality issues, insects, diseases, a dry July and hurricanes, the crop looks pretty good. I'm really surprised how well it turned around." Ross said many farmers are struggling with late-season insects and disease. Soybeans were planted across 3.2 million acres in 2008, up 13 percent from 2007. Projections are for 38 bushels an acre, up two bushels from a year ago. 10/6/08 Date: 9/30/08
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