1. With #pft21 in full swing this week, thought it would be a good time to share something I have been digging into on corn yields: wildfires. You read that right: wildfires. Lots of smoke and haze around this summer and we know photosynthesis needs energy from the sun.
2. I want to begin with a foundational fact about corn yields that I learned from the great Ken Cassman, now retired from Agronomy Dept. at Univ of NE. He was kind enough to exchange emails with me awhile back and instruct me on some corn yield basics.
3. This is from a 2010 book chapter that Ken co-authored. The right panel shows the strong relationship between the total solar radiation absorbed by the corn plant post-silking and yield. Note high R2
4. What does this really tell us? IF solar radiation is roughly constant per day, then the longer is the post silking period the higher will be corn yield. And possibly by a lot. This is why post-silking temps are so important.
5. The cooler the post-silking temps, the longer the corn plant will live and the longer the grain fill period. That simple. All of this assumes that solar radiation is roughly constant per day during the post-silking grain fill period. Typically a reasonable assumption.
6. But all this wildfire talk got me to thinking of a very nice study of the the corn yield in 2004 by the legendary Stan Changnon and his son. Highly recommend it. Found here: isws.illinois.edu/pubdoc/DCS/ISW…
7. Stan and his son tried to figure out why corn yields in IL in 2004 were so high. They concluded that among other factors, the summer of 2004 had an unusually high number of clear sunny days. Apparently, some weather stations in IL collected this data historically.
8. Hopefully I have now convinced you that there is a scientifically valid reason to think that smoke from wildfires could be a negative factor for corn yields here in the US. Less solar radiation in general, but especially post-silking, can lead to lower yields.
9. A very timely new article from a Pioneer agronomist, Mark Jeschke, "Is Smoke from Wildfires Affecting Crop Yields?" found here corteva.showpad.com/share/OUqawYGy…
10. So it turns out that the actual relationship between wildfire smoke and corn yield is quite complicated (and beyond my agronomic knowledge base to fully understand). But the bottom line is that the potential for it to be a yield drag is real.
11. So, looks like corn yield modelers need to start thinking about coming up with measures of solar radiation to test in their models. Sure some are already doing this in the private sector. Does anyone know if NOAA has this kind of data?
12. Adding a comment to the thread. I am not taking a position on the magnitude of corn yield impact of wildfire smoke. Instead, something that is worthwhile to think about and investigate.
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1. Weekend Reading (Early Edition): With the August Crop Report from the USDA out tomorrow, thought there might be some interest on my most recent paper, "To batch or not to batch? The release of USDA crop reports." Published in Agricultural Economics onlinelibrary.wiley.com/doi/full/10.11…
2. My co-authors (Joshua Huang, Teresa Serra, and Phil Garcia) and I took a deep dive into the benefits and costs of implementing a batch auction around the release of USDA crop reports (and acreage and stocks). PDF is free for now at this link onlinelibrary.wiley.com/doi/pdf/10.111…
3. Some background. USDA was basically forced to move to "real-time" release of Crop Reports after the onset of electronic trading. No matter where the USDA set the release time a futures exchange could easily move trading hours to cover the release.
1. With it being USDA August Crop Report week, good time to review Corn Belt weather during the last 40 days, the critical growing period for corn and very important for soybeans as well.
2. First a shoutout to the Midwest Climate Center for making these great maps available to the public. Precip in main part of Corn Belt was a mixed bag. Decent rule of thumb in my experience is that anything above 75% of norm is likely in decent to good shape.
3. IL good to very good on precip since July 1, except far north. IA not as good but still less than half of state in any real trouble. Have to get to northern half of MN to see super dry areas.
1. Back on crop acres with new #FDD article this week. Tried to figure out what happened to the 14.4 million acres that left US crop production after 2014. farmdocdaily.illinois.edu/2021/06/where-…
2. Here is my accounting of total US crop acreage. Notice that total was pretty stable from 1998-2014 around the average of 359.4 million acres. Then down down down through 2020. Total drop after 2014 of 14.4 million acres through 2020.
3. Started analysis with acres going into and out of CRP. Anything funny going on there. The answer is yes. Should be an inverse relationship between CRP and principal crop plus prevent plant acres. This held through 2014, then both declined. What gives?
1. One more quick thread on the biodiesel hedging article. This one is directed to grad students and other researchers looking for interesting problems to dig into. I am asked more than you think, "How do you find interesting research topics?"
2. Well to start with, I am an applied economist. Very applied. To find interesting applied economic research problems I think you have to be engaged with the relevant industry and part of the ongoing conversation.
3. I used to do this by reading a lot of trade magazines but now I get pretty much a 24/7 flow of engagement on twitter. But there is a trick. I am interested in what people in the industry are saying and talking about, not necessarily what other academics are saying.
1. Weekend Reading: Have not done one of these for awhile. This one is on a brand spanking new article coming out in Energy Economics "Biodiesel hedging under binding renewable fuel standard mandates." sciencedirect.com/science/articl…
2. Hopefully that link is in front of the paywall. I can never tell from publishers page. I really think this is a fun little article. My co-authors are my long-time partner in crime Phil Garcia and Jason Franken of Western Illinois.
3. The genesis for this article was from following trade conversation on biodiesel pricing and hedging. Always much discussion about the leading role of heating oil/diesel futures on biodiesel prices, and by implication, how one should hedge biodiesel.
1. Weekend Reading: Just published in the AEPP (free access) with farmdoc colleagues "Coronavirus Impacts on Midwestern Row‐Crop Agriculture" onlinelibrary.wiley.com/doi/full/10.10…
2. Our main purpose in writing this paper was to show that the coronavirus pandemic simply added to the downward financial pressures on Corn Belt ag that have been building since 2014, when the long price boom ended.
3. This downward trend in returns is nicely summarized in this chart. The big soybean return in 2018 was MFP1. So any truly good news for crop farmers after 2013 was from gov't payments. Don't be put off by the x axis scale. Need to get that fixed.