News Weather extremes
Corn Belt hit hard by floods
Floods as a result of the overwhelming rainfall are severely affecting the American Corn Belt, with the state of Nebraska in particular having been hit hard. As the rivers overflow far beyond their banks, other states are now threatened as well.
The US state of Nebraska experienced a so-called 'bomb cyclone' between Tuesday 12 and Thursday 14 March. That is a water bomb that brought between 300 and 425 millimeters of precipitation in a relatively short time. In other parts 'only' 100 millimeters fell.
Rain on frozen ground
Since the rain fell on frozen ground, the water could not drain. The situation was also exacerbated by the melting snow. The low-lying areas and rivers flooded, causing enormous havoc. A state of emergency has been declared in 74 cities and 65 municipalities are dealing with flooding.
Despite the fact that the water level is slowly falling, the problems are not (yet) over. The water now flows to the neighboring states of Iowa and Missouri, which are also experiencing problems. The ice in the rivers also ensures that the water is not drained properly. In fact, more water is added, mainly due to the melting of snow.
Agricultural state hit
Nebraska is a huge agricultural state and the third largest producer of corn in the country. The sector is therefore very hard hit. With nearly 3 farms and $50.000 billion in revenue, the state is no small sized agricultural business. Along with Iowa, Illinois, and Minnesota, this part of the Corn Belt produces 23% of U.S. grain corn. Much of the maize is processed into ethanol.
A large Cargill factory has been closed due to the flooding. Maize cannot be supplied and the residual flows cannot be removed. This is now used as animal feed. In addition, transport of (agricultural) products is impossible, because complete roads have been washed away. These include gravel roads in the countryside, but larger asphalt roads have also been eroded.
Markets unmoved
Given the impact of the storm, it is surprising that agricultural markets are not moving. Major commodities are all trading in the red on Tuesday, March 19. On the other hand, the export engine is starting to falter as a result of the weather. Not only because of these floods, but also because of extreme snowfall in other states; in Michigan, for example, there is almost 1 meter of snow in various places.
In the meantime, arable farmers have also started sowing maize in the enormous country (Texas). However, due to the rain showers, sowing is delayed. The United States Department of Agriculture (USDA) estimates that 11% is now in the ground, compared to 16% on average. The growth of durum and soft wheat is also hindered by the weather.
Niels van der Boom
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