In July, some 64% of the U.S. was experiencing intense drought. According to Weather Underground meteorologist Jeff Masters the extent of the drought is second only to the great Dust Bowl of 1934. And, as you might have guessed, our crops are suffering.
For eight weeks in a row, the U.S. Department of Agriculture has cautioned that the state of this year’s corn and soybean harvest is deteriorating. And while a rainy August could save soybean crops, it would be too late to salvage millions of acres of parched cornfields.
The United States is the biggest grower and exporter of corn, with over 92 million acres dedicated to the crop. Corn and corn products are tied to the price of everything from chickens and milk to the cost of soda and sweetened cereal. Some 75% of processed foods contain at least one corn-based ingredient and corn is widely used as animal feed.
With corn and soybeans both selling at record highs, we can expect a bump in our grocery bills. The last time we faced a similar corn failure was in the 1980s. Now around 1/3 of our corn crops go to ethanol and biofuel – leaving us even more pinched.
While some of us will be able to absorb a $10 hike in our weekly food allowance, the rising costs of our exports could lead to food instability in places like China and Mexico.
It’s worth noting that two of the top three most expensive weather disasters since 1980 – costing in excess of $15 billion dollars – have been droughts. And until we reverse the impacts of climate change, we can expect longer and more severe droughts worldwide.
Web Links
http://www.ers.usda.gov/topics/crops/soybeans-oil-crops.aspx
http://www.wunderground.com/blog/JeffMasters/comment.html?entrynum=2157
http://money.msn.com/top-stocks/post.aspx?post=efb8be0a-aa02-4778-a785-ed77534d2949
Photo, taken on July 26, 2012, courtesy of CraneStation via Flickr.