As Iowa cities and towns continue to clean up from widespread and devastating floods, the American Farm Bureau is reporting that the Midwestern flooding in late spring resulted in an estimated $8 billion in agricultural damages, half of it in Iowa.

The bureau estimated that the state’s corn yields will fall by 16%. Illinois’ losses are about $1.3 billion, according to published reports citing bureau estimates.

Some in Iowa have suggested that the Legislature and Gov. Chet Culver tap the state’s $620 million in budget reserves to help cover the costs of recovery. Senate Majority Leader Michael Gronstal, D-Council Bluffs, suggested the state should borrow to cover recovery costs instead of dipping into reserves.

Culver has said a special session to deal with costs not covered by federal relief and other aid is likely but not before a more complete assessment of total damages and local and state needs is done.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.