Combines and wagons dotted the fields around the Chamberlain/Oacoma area as farmers are venturing into the fields to harvest their winter wheat.
This is the end result of a growing season riddled with above average rain and cooler days. Those moisture conditions made it more difficult for farmers to get into the fields, while temperatures stunted plant growth.
“We’re really fearing that the [winter wheat] crop won’t be as good this year,” said CHS Farmers Alliance Elevator Manager Terry Nutter.
That concern seems to be valid. Fields aren’t producing nearly as much as last year.
In 2008, area farmers enjoyed winter wheat yields of 60-80 bushels per acre; this year, they are likely to get closer to 35 to 40 bushels per acre.
The letdown is huge, since 2008 was a record-breaking year in winter wheat production for the state.
The South Dakota Department of Agriculture expects July to see 72 million bushels of winter wheat harvested this year, up 3 percent from June estimates, but still well short of the 104 million bushels recorded in 2008.
Prices are also down. The Farmers Alliance in Chamberlain is paying $4.86 per bushel for winter wheat as of Monday morning, down from a state average of $6.55 per bushel in 2008. “There’s not as much wheat, and [farmers] aren’t getting as much for it,” said Farmers Alliance employee Neal Cheeseman.
In this first weekend of harvest, Farmers Alliance received around 30,000 bushels of winter wheat, ranging in moisture content from 12 percent to 15 percent.
“Farmers picked and chose where to harvest in order to get the driest wheat in,” said Cheeseman.
While farmers are battling the elements to get in their harvests, cattle ranchers are fighting on multiple fronts to keep their market stable. The recent strain on the economy is beginning to hit ranchers where it hurts: their pocketbook.
“Banks aren’t loaning as much to young ranchers. Everyone’s running,” said Chamberlain Livestock owner Wes Moore.
Reluctance from banks are especially hitting the feeder cattle market, said Frank Volmer, owner of the Winner Livestock Auction. Producers of feeder cattle lost equity over the past few months, which is why the market is just holding steady instead of growing.
The economy is also affecting the quality of meat being purchased by the consumer, said Volmer. People are buying more low to mid-grade cuts of meat, such as hamburger and roasts. Top-cuts, such as steaks, are moving more slowly.
Another factor hitting ranchers hard is the dairy buyout, said Volmer. When milk prices went low, the National Dairy Council started buying out producers who wanted out of the business. In doing so, new meat flooded the cattle market and drove prices down.
“The market was a yo-yo. Right now it’s holding steady,” said Volmer.
This happened once before in 1988, when the government bought out the dairy industry. That buyout wrecked the fat cattle market, according to Volmer. He doesn’t foresee this buyout being that bad, since the buyout is through the Dairy Council.
The current market has been holding steady, but is down compared to last year. Wayne Tupper, owner of the Kimball Livestock Exchange, noted that yearling steers and heifers are down $8-10 per 100 weight from last year. Butcher cattle are also down, going in the upper $40s to the $50s per 100 weight this year as compared to $60s per 100 weight last year.
The weather, always a factor for a rancher, has blessed and cursed them this year. Spring storms took out many cattle in the area, especially calves. The calf loss created an additional strain on the market by putting more butcher cows on the already flooded market.
However, the current weather is helping cattle producers, with the multiple rains and cool temperatures keeping pastures growing and cattle stress down.
“It’s good weather for cattle,” said Ed Houska of the Kimball Livestock Exchange.
