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One big difference from 1988
A lot of people have been comparing this year’s drought to the last major drought that took place in 1988.
But the director of research and commodity services for Iowa Farm Bureau, Dave Miller, says there is one big difference between then and now.
“The difference is we came into the 1988 drought with almost a year’s supply of corn already in the bin,” Miller says. “That is not the case here—we’re coming into this year with about three-and-one-half weeks of corn supply in the bin—at the end of the 2011-12 marketing year.”
Some analysts were surprised that USDA dropped its average corn yield estimate by 20 bushels per acre in last week’s supply and demand report. But Miller sees it as a positive move by USDA.
“I think it actually helps restore some credibility in USDA,” he says. “It made the supply and demand reports much more meaningful.”
The drought, volatile commodity prices and risk management will be among the topics discussed at an Iowa Farm Bureau Economic Summit July 23rd and 24th in Ames.
More information about the summit can be found at iowafarmbureau.com.
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