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Among those still reeling from the devastating impacts of Hurricane Katrina are southern farmers and livestock producers with operations near the Gulf Coast. While the extent of the destruction will likely take weeks or longer to assess, conservative estimates predict a $1 billion price tag on the damage done directly to crops and livestock, according to Terry Francl, American Farm Bureau Federation senior economist. Add to that another $1 billion in indirect costs as a result of a growing waterway shipping crisis and soaring fuel prices.
Following the storm, some 300 dairies in Alabama, Mississippi and Louisiana were without power and water and issued an SOS for 50-to-60-kilowatt and larger generators to provide power for milking machines and refrigerated storage tanks.
Lost power wasn't the only problem for Louisiana milk producers. Dairyman Eugene Robertson, who lost two sheds from his dairy in St. Helena Parish to Katrina, predicted that a lot of milk would be dumped with New Orleans, the No. 1 destination for milk from his and most Florida dairies, in ruins.
"It may be 20,000 pounds a day for the next five days," he said, Aug. 31. "That's 100,000 pounds at $15 a hundredweight. We're going to start losing $15,000 a week and those New Orleans markets aren't going to open up any time soon."
The Dairy Farmers of America processing plant in Franklinton, La., was out of commission as recently as Sept. 6, according to Agi Schafer, vice president of communications for the DFA in Kansas City, Mo. Schafer said milk silos are at capacity, so no new supplies of milk can be accepted.
In the region outside the unfolding tragedy in New Orleans, it was evident that Hurricane Katrina had not spared Louisiana's agriculture. The damage, agricultural agency officials say, may top that of the great flood of 1927, in which the Mississippi River broke out of its levee system in 145 places and flooded 27,000 square miles, causing over $400 million in damages and killing 246 people in seven states.
The Louisiana Farm Bureau reported that sugarcane in Iberville, Assumption, Lafourche and Terrebonne parishes, had been flattened by Katrina's high winds. The good news is the downed crop didn't get a whole lot of rain, so it's possible that it could rise again with a few days of good sunshine. However, application of ripening agents will be delayed, and if the mills' power doesn't get restored soon, the neighboring state Farm Bureau said there may be no point in harvesting it.
With the United States already facing a tight sugar supply—and subsequently increasing the allotments for imported sugar—AFBF's Francl said the price of sugar from sugar cane is likely to be the most significantly impacted by Katrina.
The Louisiana FB also speculated that the storm surge had wiped out the state's citrus crop in Plaquemines Parish, where thousands of head of livestock were roaming freely in salty floodwaters.
"The animals still alive in those outlying areas are hardy and we can get them hay," said Assistant State Veterinarian Martha Littlefield. Littlefield said her agency has been busy organizing the shipment of cattle out of the area and even out of the state, while contemplating what to do with the many dead animals that will start to decompose. "We're really more concerned with the death and its effect on the people in that area. We want to minimize that as much as possible."
Meanwhile, Texas' livestock health officials are working to accommodate the evacuation of livestock from Louisiana and Mississippi, displaced due to Hurricane Katrina. The Texas Animal Health Commission (TAHC) will allow livestock from these states to enter Texas without the usually required health documents, provided the owners or shippers alert TAHC prior to crossing the state line. Dairy cattle evacuated to Texas without a cattle tuberculosis (TB) test must be isolated from other cattle and meet entry requirements upon arrival.
Damage was observed in North Louisiana rice fields that include slightly less than a third of the state's 530,000 acres. Following a quick tour of the area Aug. 30, Donna Lee, Lousiana State University AgCenter county agent in East Carroll Parish, estimated that "60 percent of the rice is down." Seventy to 80 percent of the rice in Tensas Parish, which was ready to be harvested, also got knocked down.
Some cotton fields in North Louisiana also were damaged, according to LSU personnel.
"The overall condition of the cotton crop is still good," reported Dr. Sandy Stewart, LSU AgCenter cotton specialist. "The bulk of the state's cotton was apparently far enough west to avoid major wind damage," he said.
Cotton prices will be tied to the quality of the remaining plants, rather then the quantity, AFBF's Francl said.
"The overall impact on the U.S. price will be minimal given the 21 million bale-plus domestic cotton crop, as well as large global stocks," he said.
The immediate concern for many producers is fuel. Long lines had formed at gas stations all across South Louisiana in the aftermath of the storm. In some areas, stations would only accept cash; in other areas, there was no gas at all. Complicating matters for producers is the fact that diesel supplies have been diverted to power generators for hospitals and makeshift refugee shelters throughout the region.
"I've been trying to buy diesel for my farm and was unable to get through to my supplier," Ronnie Anderson, an Ethel, La. rancher and president of the Louisiana Farm Bureau, said Aug. 31. "One producer I talked to needed 1,000 gallons to finish planting his sugarcane and was told there was none to be found. It's getting really critical and I think it's only going to get worse."
The Environmental Protection Agency has granted a fuel waiver to Louisiana and other affected states which allows all parties in the fuel distribution system to supply gasoline that is not compliant with Clean Air Act standards for a measure of quality known as Reid Vapor Pressure. Under the wavier, diesel fuel with a sulfur content greater than 500 parts per million, which exceeds the normal standards, may be sold. The waiver will remain in effect through Sept. 15, 2005. However, any non-compliant fuel that remains in inventory after that date in the affected states may be sold.
Another concern for producers is the delay in grain shipments from Port of New Orleans. Dry weather in the Midwest has already caused delays due to low river levels along the Mississippi. Although most facilities are still intact in New Orleans, the condition of loading facilities is still unclear. On Sept. 3, Bloomberg.com reported that Cargill Inc., the world's largest agricultural company, was forced to halt shipments from its four grain terminals in Louisiana after flooding from Hurricane Katrina led the U.S. Coast Guard to ban ocean-going vessels. The operations of Archer Daniels Midland Co. and Bunge Ltd. were also halted while the U.S. Army Corps of Engineers surveys the Mississippi River for debris to make sure it's navigable for the biggest vessels. About 59 percent of unprocessed grain and oilseed exports are handled by the Port of New Orleans, which is currently without power or personnel. Moving the grain to other ports isn't cost effective and rail capacity isn't available, the report stated, adding that it takes about 15 rail cars to hold the same amount as one barge.
"Furthermore, there is mounting concern that the shutdown will compel international buyers to look to other sources, such as China for corn, or South America for soybeans," Francl said. "This could translate to a half-billion dollar export loss for U.S. producers. The ensuing 30- to 40-cent per gallon jump in gasoline and diesel prices presents another significant challenge to farmers nationwide preparing for harvest and could come with a half-billion dollar price tag."
Early reports in Alabama—where agriculture is its number-one industry—indicated an almost total loss for pecan and produce growers in the southwest part of the state.
In addition, damage to greenhouse and nursery crops was said to have exceeded that from Hurricane Ivan. According to the Alabama Farmers Federation (ALFA), row crop farmers in the western part of the state fear that, if they are able to harvest their wind-battered cotton and corn, it will be of lower quality and yield.
There also are reports of barns that were destroyed, and poultry houses that sustained mild to moderate damage. Alabama farmers are also worried about the cost and availability of fuel needed to harvest their crops.
Mississippi Extension officials continue to assess crop and ag infrastructure damage in that state. Worst-hit areas were south of I-20, but crops were blasted at least into parts of the north Delta and northeastern Mississippi. Preliminary estimates look like this:
•80 percent of the state's 9,000 poultry houses were at least damaged, with an unknown number destroyed. Millions of chicks already have been lost, and fuel was needed to run generators and keep air circulating to maintain existing flocks.
•Corn yields have likely been reduced by 20 percent statewide, with whole fields blown down in places.
•Soybean averages will be cut 10-15 percent statewide.
•Cotton production could be reduced 20 percent across Mississippi. In some defoliated fields 70 percent of the cotton blew away. Plants are down or twisted on a wide scale, and boll rot and hardlock will take a toll.
•Fuel is in short supply and/or can't be delivered right away to outlying areas. Gas lines formed in central Mississippi right away, partly due to lack of electricity to run pumps. When power was restored to a station, motorists quickly lined up and drained its supply.
Extension personnel said, "It will take more diesel to harvest rice and corn that have lodged. Farmers at least as far away as south Georgia told us this week (first week of September) that they were scrambling to find diesel. With the cotton so twisted, more acres will have to be defoliated by air, and the next question is whether enough aviation fuel will be available to cover the crop."
Florida agriculture did not remain unscathed. Nursery operations in Miami-Dade County suffered significant damage as a result of Hurricane Katrina. Preliminary reports from USDA's Farm Service Agency and reports from industry representatives themselves indicate that nurseries in the county sustained significant structural damage to greenhouses and other buildings from Katrina's high winds, and many plants were flooded by the heavy rains associated with the storm.
