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September 9, 2004 North Dakota Producers Suffer $329 Million Net Loss The direct crop losses to North Dakota producers because of poor growing conditions this year is estimated at $530 million. About $201 million is expected to be covered by federal multi-peril crop insurance, leaving a net loss of $329 million to the state’s producers. Income produced at the farm level generates additional activity throughout the state’s economy. The total negative impact on the state’s economy is estimated to be $1 billion. Households will suffer the most with an expected $511 million in reduced income followed by $245 million in reduced retail sales for businesses. The soybean crop is expected to realize the largest loss ($170.6 million) followed by hay ($109 million) and corn ($84.3 million). Most hay crop losses are not offset by crop insurance payments, so the total lost production is included in the $530 million figure. These estimates were completed prior to the end of the growing season. Weather conditions through the rest of September will impact final yields in areas that escaped the frost. At the request of Governor Hoeven’s office, the North Dakota State University Extension Service and county emergency boards completed an analysis of the crop damage and its economic impact on producers. In 2004, North Dakota producers experienced a difficult growing season. The southwestern part of the state suffered through a severe drought while the entire state felt the effects of a lack of growing degree days, which hurt the progress of late-season crops. The third week of August brought a hard frost to many areas of the state, which eliminated any potential for late-maturing crops to reach maturity. While yields for many crops are expected to be down, the small grains and field peas are projected to be above average. ### Source: Dwight
Aakre, (701) 231-7378, dwight.aakre@ndsu.nodak.edu
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