The USDA has issued projections on the effect of the drought on food prices in the U.S. The report begins, "the most severe and extensive drought in at least 25 years is seriously affecting U.S. agriculture, with impacts on the crop and livestock sectors and with the potential to affect food prices at the retail level." As of mid-August 2012, 60% of the farms in the United States were experiencing drought, with 28% experiencing "extreme or exceptional drought." The drought will destroy or damage a portion of the field corn crop in a number of states. The farm price of corn has already increased and this will affect the price of other crops. The earliest effects will be on pork, beef, poultry, and dairy, especially fluid milk. Drought conditions may lead to herd culling because of higher … [Read more...]
Consumers Will Feel Drought’s Impact In Their Wallets
Drought that wiped out crops throughout the Midwest during the summer of 2012 will drive up grocery bills in 2013, according to a report from the Food Institute. On average, a family of four can expect to pay an extra $6.75 each week or about $351 more for the year. The U.S. Drought Monitor, which measures conditions weekly, breaks drought intensity into five categories: abnormally dry, moderate drought, severe drought, extreme drought and exceptional drought. For the week of September 11, 2013, 78.5 percent of the contiguous U.S. was somewhere on that spectrum, compared with 43.5 percent during the same week of 2012. And 64 percent of the country was experiencing moderate to exceptional drought conditions, compared with 30 percent the previous year. Farmers have already … [Read more...]
Time Running Out For 2012 Farm Bill
Partisan issues have kept Congress from taking on the 2012 Farm Bill and now time is running out. GOP leaders decided not to schedule it for floor action next week, which leaves Congress just four legislative days to consider the $957 billion bill before it adjourns for the August recess. The decision drew head scratches from some and anger from others including Collin Peterson (D-Minn.), House Agriculture Committee ranking member. “There is no excuse not to bring the farm bill to the floor. We’ve wasted the last two weeks on political messaging bills that are going nowhere. If the House Republican Leadership were serious about creating jobs and growing our economy they would bring up this bill. There is no good reason to put one of our nation’s economic bright spots, the rural economy, … [Read more...]
