In a tale as old as time, price speculators and the weather have conspired to put the squeeze on farmers.
Corn futures have dropped nearly 13 percent over the last week, from $6.37 per bushel on June 26 to $5.55 by June 30. The promise of rain in the forecast spurred investors to drive the price lower on the assumption that more rain would improve harvests this fall.
But that precipitation remains theoretical. Until it hits the ground, farmers like Duane Hinchley of Cambridge can only watch as the price of their livelihood dives.
Hinchley estimates he has invested $2.5 million into his 2,500 acres this year.
“That could all shrink,” Hinchley said, referring to the crops in his fields. “If no more moisture comes from this point on, it’d be a disaster.”
He said he has done everything in his power to set his corn up for success. Now it’s on Mother Nature to supply the rain.
The old adage of “knee high by the Fourth of July,” has not been true for several generations. Corn grown with modern methods regularly reaches chest height by this time of year.
But minimal rain has stunted stalks.
Hinchley’s other crops are impacted too. He feeds his over 400 milk cows alfalfa, a staple he can mow monthly. His second haul brought in only about half the yield of the first. He’s not scheduled to mow again for two weeks, but said that there is nothing in the field for him to collect.
Without alfalfa, Hinchley faces a choice: truck in more forage for his cows at great expense or cull the herd in anticipation of lean times. He’s opted for the latter.
Despite all the pressures on his operation, Hinchley remains positive about the rain and his corn’s ability to bounce back.
“If [the crops] would get an inch, inch and a half here this week, like we’re hoping, that corn would be over our head height in a week,” he said.
