With the recent flooding crisis in the Midwest expected to present problems all the way into July, it will no doubt impact the 2019 planting season and is already having an impact on the grain that farmers store on their farms.
Understanding the specific impact and how it relates to your prospects and customers will be essential as your business moves forward in the coming months.
We performed a geospatial intersection of our land data with a flood map from March 16 – 24 and four states – Iowa, Nebraska, Missouri and Kansas – have seen significant impacts from the flooding. Here are some specifics:
- Nearly 150,000 growers in the 4-state area affected by the flooding
- Nearly 90,000 grain bins located in the flooded areas that account for more than $4 billion estimated grain bin construction cost
- 1.24 billion bushels of storage capacity in the affected area – that’s 30 percent of the on-farm grain storage in the area and an estimated $7.5 billion worth of grain that is potentially damaged
- Over 16 million corn, soybean or wheat acres are located in the affected areas
Here are some specific insights to help you understand the impact of this flooding on the ag market overall.
Damaged grain stored on farms
With an estimated $7.5 billion of grain in the flooded areas, the economic impact on growers is going to be significant – especially among those with smaller operations who can’t afford to take the hit. Here are some of the specific statistics about the on-farm storage:
|41,207||89,330||1.24 billion||$7.5 billion||547,422|
|growers with on-farm grain storage in the affected areas||total on-farm grain storage bins in the affected areas||bushels of grain storage capacity in the affected areas||estimated value of grain stored in the affected areas||predictive planted acreage (corn, soy, wheat) with bins in affected area|
And here is some of that data broken down by state:
|State||Total Affected Growers with Bins||Total Number Affected with Bins||Total Capacity of Affected Bins (Bushels)||Total Counties with Affected Bins||
Total Predictive Affected Planted Acreage with Bins
In essence, both in the amount of grain that’s been affected and the cost in terms of lost grain and the construction costs to rebuild, farmers in these four states have been hit hard and will likely have a hard time recovering.
The affected storage takes up less than a third of the market overall.
Farmland impacted by flooding in terms of planted acres
Not only has on-farm grain storage been affected, but also the flooded lands that are going to be planted in the coming season. Here’s a breakdown by three major crops of the predictive planted acres located in the flooded areas.
The 16 million acres of predicted corn, soy and wheat in the affected areas constitutes an estimated 8% of the overall predictive planting in the Farm Market iD database. While this is a small percentage, if your market share or overall revenue growth strategy requires you to gain significant business in these affected states, this is likely going to impact the results you see and you may need to adjust your strategy as a result.
Communicating with growers in the affected areas
Given the devastation that many of these farmers are facing, it’s important to understand who the growers are and how your business may be able to help. Out of the growers in the affected areas, here are summaries of those who have an email and/or phone number that you can reach them at:
|State||Affected Contactable Growers||Affected Contactable Growers with Bins|
When you go to have the conversation with the grower, it’s important not just to know that they were affected by the flooding, but to know the details of their operation so you have an idea of what’s been affected and where you can help. The following screenshot of our GrowerProfile tool shows you how you can see the entirety of an operation that’s been affected:
Use the information available through Farm Market iD to plan your response to the flooding crisis - reach out to us to schedule a conversation.