Worst U.S. Drought since 1956 Shrivels Corn, Soy Crops

article from NewsMax
July 16, 2012

Worst U.S. Drought since 1956 Shrivels Corn, Soy Crops

An expanding U.S. drought, now deemed the worst since 1956, dealt another blow to the corn crop, with conditions deteriorating for a second straight week in the world's top exporter of the grain, U.S. government data showed on Monday.

There were signs that the drought, which has been centered in the Midwest, was expanding north and west, putting more crops at risk including in states like Nebraska where large tracts of cropland are irrigated by groundwater and rivers.

The National Oceanic and Atmospheric Administration (NOAA) said in a report on Monday that, based on the Palmer Drought Index, 55 percent of the contiguous United States was under moderate to extreme drought in June. That is the largest land area in the United States to be affected by a drought since December 1956....[article continues]

This is potentially devastating right in the middle of a financial crisis.

This is already sending commodity prices up.

All food prices could soar very soon.

Ethanol fuel is also affected.

Big Damage ?

I smell a bailout for the agricultural giants on the horizon
2nd

reply to post by bacci0909


As a taxpayer, I'd rather bail out a farm than wall street.

Too bad there isn't any money left for the farms now. Capitol is dryer than the dirt.

If you have pets, stock up on pet food. It's going to double in price.

Originally posted by litterbaux
reply to post by bacci0909

 

As a taxpayer, I'd rather bail out a farm than wall street.

Too bad there isn't any money left for the farms now. Capitol is dryer than the dirt.

If you have pets, stock up on pet food. It's going to double in price.

Didn't think I'd have to explain in-depth..

An agricultural bailout would go to "a farm" about as much as the Wall Street bailout went to you and me, or small banks even. Much of the Wall Street bailout was used so that the biggest banks could buy up a lot of the smaller ones.

An agricultural bailout would go to Monsanto, Dow, and the likes, because they're the biggest producers. Those giants would then use that bailout money (because god knows they wouldn't need it in the first place) to buy up smaller farms and further corner small farmers into submitting to their demands. It wouldn't be pretty

Meanwhile corn is still being used for fuel instead of for human and livestock consumption. Which I still rank as one of the stupidest moves in the history of mankind.

Yes, food prices will be going up again. Sigh.