August 10 derecho damaged cooperatives and communities

by | Oct 14, 2020 | 5 Ag Stories, News

It has been two months since hurricane force winds and torrential rainfall tore through the state. The storm, which occurred on August 10, is nothing but a distant memory for some. But for many scattered across Iowa’s rural landscape, it feels like yesterday, as they are still working to recover their losses.

Eastern Iowa agribusinesses and farmers today (Wednesday) spoke about the derecho and its impact to state and federal officials. U.S. Under Secretary for Farm Production and Conservation Bill Northey and Iowa Secretary of Agriculture Mike Naig gave one hour of their undivided attention to participants, who recalled the devastating event at a disaster relief roundtable at Heartland Cooperative in Elberon.

Heartland Co-op is no stranger to structural damages sustained from this powerful wind storm. Tom Hauschel, Chief Executive Officer for Heartland Co-op, says the Iowa-based cooperative reported damages at 45 locations, across a 220 mile stretch.

“It brings severe impact to the cooperative itself. The cooperative is owned by 6,000 Iowa farmers that do business with us on a daily basis,” Hauschel says. “The damage sustained has taken one location out completely (and) we have five other locations that have severe restrictions on their harvest ability.”

Not only did the derecho put a strain on cooperatives, but the communities they are a part of, says Katie Hall, Iowa Institute for Cooperatives director of government affairs.

“Initially, we had 71 impacted elevators and locations. Of those, the average impact, or soft cost net is $700,000 per location. If you’re talking 71 locations and $700,000 per location, we’re shy of $50 million. You take your gross and subtract out wages and (other) things you won’t be supplying because you don’t have a facility, that’s a huge number,” Hall says.

Hall expressed concern for the farmers utilizing cooperatives, as well as the rural communities in which the cooperatives are located. Under Secretary Northey says Agency officials continue to seek ways to support impacted parties.

“We continue to look for something to be able to help co-ops,” Northey says. “Our CCC is structured to help farmers. Can we help farmers through co-ops? I don’t know. We’re still looking at those pieces of what fits in the authorities of what a CCC would have.”