Crop Yields Can Affect Gas Prices Too

Today's drivers have a lot to consider, especially with the gas prices topping $4 a gallon this week. However, also happening is the start of planting season. Drivers have to be more cautious with increased slow-moving, over-sized farm equipment on the roads.

One of the hottest news topics in agriculture right now is the twin bond between gas and corn prices. 

Last Friday's USDA World Agriculture Supply and Demand Estimates (WASDE) was expected to be big news in the stock market as well as the ag community. It turned out to be largely uneventful, said Agriculture Economist Bill Johnson, a veteran teacher at Joliet Junior College Agriculture Program. 

The WASDE is a report Bill Johnson likens to the government's balance sheet. Most analysts predicted it to say that the supply is short, thus causing prices to rage higher. Instead, it showed essentially no changes when it comes to corn on hand.

The amount of grain on hand – or lack there of – is creating bullish price spikes. We are seeing new highs, especially in corn. 

As the world counts every kernel of corn in our global cache, drivers stand in awe at the pumps. Corn is an increasingly important component in ethanol. Without ethanol, gas would be 50 cents higher a gallon, Johnson said.

For now, a spotlight shines on this planting season with a critical eye on the weather. Corn needs to be planted early enough to receive plenty of growing degree units. That is the scientific calculation for heat and sun. The ideal time corn to be planted is by May 1. 

In addition to the timing, it also needs to be planted in optimum soil. Drivers beware, if it rains too much, we may very well see gas prices increase.

That's because wet fields can result in less corn produced, according to Tom Johnson, founder of TJ Technologies, a supplier to Minooka's Hintzsche Fertilizer. Tom Johnson is a recognized expert in root systems. He is no relation to JJC's Bill Johnson.

Tom Johnson explained that when standing water pools on fields, it actually damages the soil profile. That limits the roots' ability to explore the soil. That can stunt plant growth and decreases yield.

"What we do as a business is we try to use biologicals so that we can get the root to access the soils that it would not access," Tom Johnson said.

The last couple of days have been the beginning of corn planting here in Will, Grundy and Kendall Counties. We are having good weather and the soil is relatively dry. Today's storms, however, will set farmers back until the ground dries out again. 

So when farmers talk about the weather, it can be a day-to-day, and even an hour-to-hour gamble. Weather, heat and soil are just some of the variables that factor into corn yield.  All these stars need to be correctly aligned right here in our local community.

Our Illinois farmers are incredibly important on the global stage of corn production. If it rains a lot here, or we do not get enough heat this summer, there will not be enough kernels on every ear of corn. Decreased production means skyrocketing prices. 

It is not sensational to say that if it keeps raining here, the world is going to feel it in the pocketbook both at the pump and in the grocery stores.