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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWorst-In-Generation Drought Dims U.S. Farm Economy Hopes
A worst-in-a-generation drought from Indiana to Arkansas to California is damaging crops, rural economies, and threatening to drive food prices to record levels. Agriculture, though a small part of the $15.5 trillion U.S. economy, had been one of the most resilient industries in the past three years as the country struggled to recover from the recession.
It might be a $50 billion event for the economy as it blends into everything over the next four quarters, said Michael Swanson, agricultural economist at Wells Fargo & Co. (WFC) in Minneapolis, the largest commercial agriculture lender. Instead of retreating from record highs, food prices will advance.
The U.S. Department of Agriculture declared July 11 that more than 1,000 counties in 26 states are natural-disaster areas, the biggest such declaration ever. The designation makes farmers and ranchers in affected counties -- about a third of those in the entire country -- eligible for low-interest loans to help manage the drought, wildfires or other disasters.
Farm income, which has underpinned the growth of many rural states, will be under significant downward pressure, Goss said.
http://www.bloomberg.com/news/2012-07-16/worst-in-generation-drought-dims-u-s-farm-economy-hopes.html
WCGreen
(45,558 posts)What action caused the wrath of god to come down on this great and humble nation...
Me, well, I would say that everything was going fine in the breadbasket of the world until the GOP took control over the House....
That would be my take. Seriously, who needs weather patterns and historical records to make sense from this growing drought when we ll know it is God's wraith and God must be sated before he will shine down on us...
So goes thinking in millions of household in this country.
L0oniX
(31,493 posts)We are very close to a collapse IMO.