U.S. crop damage from weather tops $8 billion

By K.T. Arasu

CHICAGO (Reuters) - From the worst floods in the Midwest grain belt in 15 years to drought in California, damage to crops from inclement weather has topped $8 billion so far this year, the largest U.S. farm group said on Wednesday.

The damage could rise or contract, depending on weather conditions for the rest of the growing season in the United States, the world's top exporter of corn, soybeans and wheat, the American Farm Bureau Federation said.

The flood damage in the Midwest over the past two weeks has lifted prices for U.S. corn, used for food, renewable fuel ethanol and animal feed, to a record high above $7 a bushel, up about 85 percent since the end of 2006 as of Wednesday.

The AFBF said leading farm state Iowa accounted for about half of the damage.

"Wet weather and flooding create issues, as farmers are unable to plant their crops," said AFBF senior economist Terry Francl. "The crops they do plant do not sprout and grow, resulting in few acres harvest."

"Additionally, the difficult growing conditions greatly reduce the yield of the crop that is harvested," he added.

Francl said he expected Iowa corn yields could fall by 16 percent this year and that 1.5 million to 2 million acres of corn and soybeans in the state that farmers intended to plant this spring will likely remain fallow.

AFBF said this would result in an estimated loss of $4 billion to Iowa's crops, and that other states taking a hit from excessive wet weather and flooding are Illinois with $1.3 billion, Missouri $900 million, Indiana $500 million and Nebraska $500 million.