A Media Drought And Skyrocketing Food Prices
My brother and his family are today completing a drive from Denver to Ohio and back. I chatted with him as he began his drive from St. Louis this morning (he took his daughters to the Cardinals/Cubs game last night). He mentioned something that I hadn't heard much about in the national media.
As they've driven through farm country over the last few weeks, they've seen or talked to farmers about the serious drought problem. They'd seen "crispy corn" and crops plowed under. He said the situation was extremely bad.
The Wall Street Journal this weekend confirms his report:
The brutal drought killing crops in the Midwest this summer threatens to stick Americans with a higher food tab.
Corn futures have surged 48.5% since May 31, while soybeans are up 31.2%. Both commodities rose again Friday on deepening fears that scorching heat and lack of rain could make supplies scant. Wheat prices have soared 46.5%, and the heat is even hurting black beans and pinto beans. Weather forecasters see little relief in sight.
Corn, soybeans and wheat help drive prices throughout the nation's larder. Farmers buy corn and soybeans to feed chickens, cows and pigs, so higher grain prices can lead to higher meat prices. The effect also is felt further along the food chain in prices for everything from milk to cooking oil.
Retail prices might not reflect the impact for months, but investors already are bidding up contracts to buy other food commodities in future months. They also are dumping shares of companies that face rising bills to secure supplies, indicating skepticism among analysts that companies will be able to raise prices enough to compensate, given the tepid economy and persistently high unemployment.
Milk is up 15% since the end of May in the futures market, butter is up 13.8%, and sugar 23.2%.
Is it as bad as this report suggests? And, if so, why hasn't any discussion of it been a bigger part of the campaign? Or is it just the inside-the-beltway media that are downplaying this story?
Drought photo via Shutterstock.
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Jun '10
Re: A Media Drought And Skyrocketing Food Prices
Mollie Hemingway, Ed.
Is it as bad as this report suggests?
Re: A Media Drought And Skyrocketing Food Prices
Burning a bunch of it for ethanol won't help food prices, either.
Mar '11
Re: A Media Drought And Skyrocketing Food Prices
Corn should be at least "knee high by the 4th of July." It made it past that height easily. Most of it around here was a foot past that, if not more. However, rain has been localized and brief. The corn and soybeans still look okay, but it had better rain some or a lot of this stuff will get plowed under.
Oct '10
Re: A Media Drought And Skyrocketing Food Prices
If this continues through harvest, livestock and meat prices may decrease in the next few months as animals are brought to market early to avoid losses due to high feed costs (and since all of the principal grains are rising together, substitution isn't possible).
This will probably rebound next year in higher meat prices as a smaller number of animals are brought to market. And this will hit while grain-derived prices are still high based on this year's failed crops.
May '10
Re: A Media Drought And Skyrocketing Food Prices
And it hasn't helped food prices for the last few years since the govt made it more profitable to grow corn for ethanol than for food stock...
May '10
Re: A Media Drought And Skyrocketing Food Prices
Because it would raise the question of why Barack Obama, who can cause the levels of the seas to cease to rise, isn't causing it to rain (the answer of course being that he is displeased that there are unbelievers in the land who must first burn incense before his genius and pledge to serve him alone before he will deign to grant the benefice of rain).
Nov '10
Re: A Media Drought And Skyrocketing Food Prices
I've been hearing a lot about it. I don't have a TV, but I've read about it in WSJ, NYT, WaPo. e.g. It's being touted not so much as a sign of global warming, but as an example of how the climate will soon be experienced.
Nov '10
Re: A Media Drought And Skyrocketing Food Prices
I've seen it here personally. While driving through North Georgia for two days a couple of weeks ago, I saw acres and acres of brown corn and soybeans, hardly fit to plow under. Rain in these parts has been sparse and scattered, except along the Gulf Coast, where they have seen heavy rain.
Nov '10
Re: A Media Drought And Skyrocketing Food Prices
What's more, Egypt --according to Spengler-- is near to running out of the means to import food, will suffer even more if a Midwest drought raises prices higher. Egypt has one thing in abundance: cannon-fodder; and neighboring Libya is comparatively rich and underpopulated. Will a state whose power is divided between the Brotherhood and the military be tempted to roll over the border? Would NATO --that intervened so kinetically to secure KaDaffy's departure in order to support European interests --oppose them?
Mar '11
Re: A Media Drought And Skyrocketing Food Prices
No it is worse. It is well to remember that despite the vapid commentaries often put forward regarding the "Arab Spring" the most significant fact that actually proceeded these events was sky rocketing prices for agricultural commodities.
No one engages in a life or death struggle due to Twitter. It is absolutely shamming to realize how few Western commentators have the smallest conception of life in these Third World nations. There simple food for sustenance comprises at minimum 50% of daily expenditures. People do not revolt for "social media" but they most certainly will raise hell if they cannot feed their families.
Grain may not be in our future but there will be a harvest from this, indeed there will.
Jul '11
Re: A Media Drought And Skyrocketing Food Prices
Would many of these drought stricken states happen to be red? Just a thought.
Mar '11
Re: A Media Drought And Skyrocketing Food Prices
I do not follow the train of your thought. What do you mean?
May '10
Re: A Media Drought And Skyrocketing Food Prices
Roberto
I do not follow the train of your thought. What do you mean? · 1 hour ago
Illinois is about as blue as possible.
Jul '11
Re: A Media Drought And Skyrocketing Food Prices
Illinois is not considered a drought state.
Apr '12
Re: A Media Drought And Skyrocketing Food Prices
Additional information: because they look forward and are watching corn and hay, many smaller cattle operations are liquidating their herds.
Dec '11
Re: A Media Drought And Skyrocketing Food Prices
I have a few sheep for mowing and fleece purposes. Between last year's end of summer hurricane deluge and this summer's drought, we have paid twice as much for hay as in previous years. Plus, we are competing with buyers from out of state - Craigslist has people from western Ohio looking for hay here in upstate NY. This is going to be a real problem over the next year.
Mar '11
Re: A Media Drought And Skyrocketing Food Prices
Oh, yes it is.
This year's yield is pretty much already baked in the cake. By the time a corn plant gets halfway to tassel stage, it's already determined the size of the ear, the number of kernels and a whole bunch of other characteristics. Throughout the Midwest, the corn crop was stressed long before it reached that stage. Drought resistant strains help, but not enough to help with this year's crop.
Cattle producers (I raise a few steers in addition to being a lawyer. Insert bull**** joke here) are starting to sell their herds. Beef prices are taking a dip but will soon skyrocket, as well, as the market contracts.
Aug '11
Re: A Media Drought And Skyrocketing Food Prices
Living here in the heartland, I frequently notice that weather-related problems on the coasts (especially the east coast) generally get the most media attention. Some exceptions do occur mostly due to the magnitude of the problem (Joplin tornado, NOLA Katrina).
The state of the corn crop here is abysmal. The weather has been strange all year. Winter brought unusually mild temperatures and no snow. We had less than six inches this winter, so we started out in the hole. We are now 12 inches behind. We've had over 29 days with temps over 90 degrees, today it will be in the 105 range. The strange thing is that we have virtually no humidity. There is absolutely no moisture in the ground and with that, we become not much different than Arizona.
We have watered more this year than we have in the last ten years. Given up on the lawn, trying to save a few vegetable plants and am now watering our foundation. Parts of our area are under water restrictions.
This drought will have more far-reaching impact than just corn. But you probably won't know it until this fall when your grocery bill rises.
Apr '11
Re: A Media Drought And Skyrocketing Food Prices
I don't know about the national campaign, but Portman's been talking about it. I think HeartofAmerica has it right; there's generally little media attention paid to non-coastal issues.
In general, I'm not sure there's much politicians should do about it; Portman's action plan seems to be a: talk to people impacted and understand the issues (eg. clay soil holds the water better, but west Ohio is particularly badly hit) and b: hope/ pray for rain. Our side doesn't promise meteorological impact from elections, but I do think that having someone who knows farms could be helpful electorally. As a semi-related side note; tell me the chickens stories in this piece aren't adorable.
Jul '11
Re: A Media Drought And Skyrocketing Food Prices
Illiniguy
Oh, yes it is.
I was going by us drought portal
Illinios is having a moderate to severe dry season. The areas most consider drought stricken are the ones that are having extreme to exceptional drought, some for several years. here
At this point about 80% of the country has been affected so it is not fun being a farmer at the moment.