Flooded cotton. (Photo by Bruce Schultz)

Cattle seeking higher ground. (Photo by Bruce Schultz)

Bernard Laviolette Jr. of Coteau Holmes shows damage to his sugarcane crop. (Photo by Bruce Schultz)

Much of Louisiana’s cotton crop was open and ready for picking when hurricanes Gustav and Ike raged into the state in early September. What’s left is about half of the once-promising crop destroyed.

LSU AgCenter cotton specialist Sandy Stewart says not a single acre of cotton has not been affected by the storms. It’s likely that all cotton farmers will experience losses, and the damage to the support infrastructure is still being calculated.

All together, LSU AgCenter economists are predicting losses nearing $1 billion to Louisiana farmers, ranchers, foresters and fishers and to the industries’ infrastructures and support services.

Based on information gathered and compiled by economists, crop specialists and field agents, the estimates on the impact of hurricanes Gustav and Ike showed a total of $951 million in potential lost revenue and damage to infrastructure – farm equipment, docks, barns, processing facilities and so forth. The total includes up to $763 million in lost revenue to Louisiana farmers, ranchers, foresters and fishers in 2008 and as much as $175 million to $200 million in infrastructure damage.

Among the hardest hit, in terms of total lost revenue, are cotton, soybeans, timber, sugarcane, corn, rice, sweet potatoes, pecans and shrimp. But the millions in losses to those crops don’t tell the whole story. Another piece of the story involves the cascading effects these losses could have on communities across Louisiana whose economies rely heavily on agriculture and natural resource industries.

Read a one-page summary of ag losses.

Aquaculture and Fisheries

Approximately $70 million to $127 million was lost to various aspects of Louisiana’s fisheries and aquaculture industries – losses estimated to average about 24 percent of the anticipated annual revenue for 2008. In addition, up to another $178 million in infrastructure losses through damage to seafood docks, marinas and so forth are anticipated. Fish kills and loss of crawfish in ponds also are expected, since issues with poor water quality often follow the heavy rains and flooding brought by storms.

Beef Cattle

While only minor cattle losses were reported due to Hurricane Gustav, Hurricane Ike resulted in some cattle deaths from the storm surge and resulting flooding. Current estimates place dead or missing cattle at 2,300. Another 5,000 to 6,000 head are under extremely stressful conditions. Based on estimates of the value of dead cattle and anticipated production declines of cattle under stress, losses are pegged at about $1.7 million (only about a half percent of this year’s anticipated production value).

Citrus

Louisiana navel orange and satsuma production was affected by Hurricane Gustav – with damage that totaled $1.5 million or roughly 24 percent of production value. Hurricane Ike also caused additional marginal damage through flooding on a small amount of acreage. While navel production has been reported to have been closer to harvest and therefore was more significantly impacted, yield loss is expected for both satsumas and navels. Percent reductions for various areas of the state ranged from 20 percent yield loss to as high as 70 percent. In addition to the fruit loss, some reports of tree damage have been received, and that damage will affect future production, as well.

Corn

Most corn had been harvested before Gustav, but damage still is $66.4 million or 15-16 percent of the crop’s anticipated value for 2008. In most years, essentially all of the corn grown in Louisiana would have been harvested by this point, but extremely wet conditions in the weeks leading up to Gustav caused the corn harvest to be delayed. Of the corn remaining to be harvested, the majority of it experienced extreme wind damage from Gustav and some damage from Ike, which decreased harvest efficiency – reducing yields and increasing costs. Rains accompanying the storms also created problems, most notably delaying harvest. Of the remaining corn that may be harvested, quality damage is likely, since lodged corn will begin to decay quickly in the wet conditions. As with other commodities, increased production costs are likely, because harvest in wet conditions will require additional tillage operations to prepare land for 2009 production.

Cotton

The damage is estimated to exceed $136 million. Cotton losses were due to a combination of extreme wind and extreme rain. In addition, because of saturated conditions and subsequent rains from Hurricane Ike, some cotton still left on the stalks will not be harvestable. The attachments of bolls to branches and carpels (burs) to bolls have rot, which will decrease harvest efficiency. An overwhelming percentage of Louisiana cotton fields had seed sprouting in the bolls, which will lead to quality losses (both lint and cottonseed quality losses) and greatly increased ginning costs. Reports also indicate some of the state’s cotton gins simply won’t operate this year because of the lack of cotton, resulting in further economic impact.

Dairy

While no animal death losses have been reported for the dairy industry, disruptions in normal operations resulted in lost milk production. For the dairies in the southeastern part of the state, electricity was lost for several days after Gustav, which resulted in increased production costs and less-than-ideal conditions for milk production. Reduced cow performance and increased incidence of health issues are expected. Losses currently are estimated at $2.3 million or just less than 3 percent of annual milk production value.

Forage/Hay

Forage and hay production was affected by flooding rains. Estimated losses of $6.2 million (4-5 percent of annual production value) represent reductions in potential hay production and quality because of delayed or prohibited hay production. In addition, reduced grazing days due to floods and heavy debris in pastures was estimated based on a hay-equivalent basis (for example, the amount of hay needed to supplement diets due to lost grazing days). In addition to those losses, producers lost stored hay. Strong winds and flooding damaged hay storage facilities.

Nursery Crops

Initial rough estimates indicate the wholesale nursery crop loss is in the range of $6.5 million or about 4 percent of annual production value. Most damage seems to be in the field growing operations that produce trees and shrubs. Plants have been lost from “blow-over,” and some remaining plants in the field were damaged, which will result in a quality loss once plants reach salable size. Some container-grown plants also suffered quality loss, and substantial losses were seen by producers of bedding plants and floricultural crops.

Pecans

The pecan industry in the state was extremely hard hit. Damaging winds and heavy rains caused a considerable amount of nut loss in the 2008 crop – estimated overall at more than $6 million or roughly half this year’s production value. Reports indicate losses ranged from 20 percent yield loss in some areas to over 70 percent in others. In addition, reports of widespread damage to trees themselves will force producers to incur additional costs associated with debris removal and will likely impact production in future years. On top of those losses, there also have been reports of pecans lost in storage resulting from either damage to storage facilities or the prolonged lack of electricity.

Poultry

Approximately 100,000 broiler deaths related to hurricanes Gustav and Ike have been reported. Deaths occurred primarily as a result of the loss of electricity. In addition to these broiler deaths, minor infrastructure damage has been reported, totaling just over $25,000 and not even registering as a percentage of the anticipated farm gate value for the year.

Rice

Before Hurricane Gustav, the Louisiana rice crop was looking to be one of the best ever – although input costs also were the highest farmers had seen. Following hurricanes, LSU AgCenter estimates show at least $33.6 million in damage or lost revenue across the state (about 9 percent of the anticipated annual production value). The south Louisiana harvest was nearly complete when Hurricane Gustav made landfall, which limited damage. But only a small percentage of the crop had been harvested in north Louisiana. Although some wind damage was seen, flooding was a bigger issue with Gustav. Then Hurricane Ike caused additional storm-surge flooding in southwest Louisiana, which could affect the second crop of rice in that area, and further delayed harvest in some areas of north Louisiana. Farmers also will face even more hurdles related to increased production costs, resulting from decreased harvest efficiency and performance, increased land preparation because of extremely wet conditions and increased costs of operating generators to maintain rice drying and storing facilities.

Sorghum

Most of the state’s grain sorghum was harvested prior to Hurricane Gustav, but wet conditions between Hurricane Gustav and Hurricane Ike limited the amount that was harvested during that period. As with corn, most of the remaining sorghum received heavy wind damage and is expected to experience considerable quality damage discounts when sold – with estimated losses pegged at nearly $3.6 million or almost 8 percent of this year’s crop value. As with other commodities, increased production costs are likely, since harvesting the remaining crop in wet conditions will likely require additional tillage operations this fall to prepare land for 2009 production.

Soybeans

Only a small percentage of the state’s soybean crop was harvested before Gustav, and damage to the crop so far is estimated at more than $153 million or nearly 37 percent of this year’s anticipated value. Of the soybeans remaining to be harvested, the storms created some immediate damage, but the bigger issue for the state’s soybean crop is flooded fields. Those flooded fields affect yields, and quality also could be significantly affected depending on how close those fields were to harvest. Hurricane Ike continued to delay harvest in many areas, increasing expected losses in yield and quality. As with most commodities, weather conditions over the next several weeks will determine final damage levels. Increased production costs also are expected because of decreases in harvest efficiency and increased tillage needed to prepare land for 2009 production.

Sugarcane

Damage to sugar production is estimated at more than $87 million or approximately 15 percent of this year’s anticipated production value. Initially, much of the state’s sugarcane crop was laid down (lodged) by Hurricane Gustav, but much of that cane erected itself in the days following the first storm. Breakage also occurred in spots, and flooding happened in some areas. It is not believed the freshwater flooding from Gustav’s rains will significantly affect standing cane. Although Ike brought additional flooding in coastal parishes and will cause more damage, the increase in overall damage estimates are marginal – because of improvements of the crop in other areas since Gustav. Approximately 100,000 acres of sugarcane are planted each year in Louisiana, and only 15-25 percent of that had occurred before the storm. In addition, some of the acreage that was planted might require replanting, since rainfall that followed the storm washed away soil that covered the cane. Although the acreage is minimal, the consequences for affected growers could be great. Crooked stalks will make it extremely difficult to plant whole stalks, which might mean growers will resort to plant using billets. This will increase planting costs significantly because of the increased amount of seed cane required to plant an acre. Also, with the grinding season expected to start during the next few weeks, the issue of being able to plant intended acres may be a problem – and that would affect future sugar production if those acres aren’t put into production now.

Sweet Potatoes

Louisiana’s sweet potato harvest had not really begun before Hurricane Gustav hit – with only a few producers conducting any part of their harvest. As a result, losses for this year’s crop are estimated at $33.5 million or more than 50 percent of the anticipated farm-gate value for the year. All major sweet potato production areas of the state received between 10 inches and 20 inches of rain over a three-day period around Gustav. Saturated soil can lead to breakdown and souring – rotting – of sweet potatoes in the ground. Although Hurricane Ike brought additional rain to some areas, the sweet potato crop in those areas already was considered a total loss. Final damage levels will be affected by the amount of rain and other climatic conditions during the next few weeks. Another longer-term issue with sweet potatoes is seed production. The majority of producers in the state hold a percentage of each year’s production to serve as seed for the next year’s growing season. With the damage caused by the storms, seed potato supplies probably will be limited for 2009 production and that could mean producers will experience much higher planting costs in 2009.

Timber

Commercial timber and forest damage associated with Hurricane Gustav in 2008 was neither as widespread nor as acute as damage associated with hurricanes Katrina and Rita in 2005. Damage from Hurricane Ike also was relatively limited. Estimates show this year’s damage at about $92 million (8-9 percent of anticipated annual production value). Damage this year was confined mainly to the south-central portion of the state, particularly to the hardwood bottomland forests in the southern and south-central parishes along the Mississippi River and the mixed pine/hardwood and pine plantation forests in western portions of the Florida parishes. Sporadic downed timber in Central Louisiana also resulted from Gustav’s winds. Stumpage prices already are depressed as a result of the U.S. housing market slump. With the addition of salvage timber in affected areas, prices are likely to be even more depressed, particularly for hardwood. Salvage itself also will be a problem because of depressed markets resulting in much lower demand for wood than in typical years. In addition, hurricane-damaged trees and downed trees resulting from storm damage are much more expensive to remove from sites, increasing logging and processing costs.

Vegetables

Heavy rains and damaging winds resulted in reported yield losses for vegetable production that ranged from 25 to 100 percent. In some cases, producers will be able to replant some of the lost production, but they will incur increased production costs in doing so. Losses currently are estimated at almost $5.5 million, more than 12 percent of annual production value.

The LSU AgCenter is one of 11 institutions of higher education in the Louisiana State University System. Headquartered in Baton Rouge, it provides educational services in every parish and conducts research that contributes to the economic development of the state. The LSU AgCenter does not grant degrees nor benefit from tuition increases. The LSU AgCenter plays an integral role in supporting agricultural industries, enhancing the environment, and improving the quality of life through its 4-H youth, family and community programs.