July 1, 2016

Safrinha Corn Yields in Jatai, Goias Expected to be down 40%

Farmers in Jatai, which is located in southwestern Goias, have harvested 10% of the 230,000 hectares of safrinha corn that was planted in the municipality. The corn that is now being harvested was planted in February and it was well advanced in its development before the hot and dry weather developed in April and continues to this day.

The highest corn yields are in the range of 100 to 120 sacks per hectare (92 to 110 bu/ac) and the yields are expected to decline significantly as the harvest moves into the later planted corn. The director of the local Rural Syndicate expects that the overall yield in the municipality will be down 40% from last growing season. Over the next ten days, farmers in the region will start to harvest the later planted corn.

Farmers are very concerned if they will be able to meet their commitments to deliver the corn that they forward contracted. Many farmers contracted 40% of their anticipated corn production at prices in the range of R$ 23.00 to R$ 24.00 per sack. The current price for corn in the region is R$ 37.00 per sack. They certainly do want to be forced to purchase corn at R$ 37.00 per sack to sell it at R$ 24.00 per sack.

In order to help the farmers in the region, officials in the municipality convinced the state government to declare the area a state of emergency due to the hot and dry weather that decimated the soybean crop and the safrinha corn crop. The idea is that with a declaration of emergency it would help the farmers to renegotiate their bank loans and their forward contracts with the grain companies.

The two biggest safrinha corn producing states are Mato Grosso where 16% of the crop has been harvested and Parana where 15% of the corn has been harvested. The safrinha corn yields in Mato Grosso continue to decline and the yields in Parana were hurt by a week of freezing temperatures.