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Food Shortage Warnings Are Already Starting To Appear, And Now Tropical Storm Barry Is Going To Rip Through America’s Heartland
Food Shortage Warnings Are Already Starting To Appear, And Now Tropical Storm Barry Is Going To Rip Through America’s Heartland
The middle of the country has been relentlessly hammered by endless rain and unprecedented flooding for months, and now it is about to be absolutely pummeled by Tropical Storm Barry. Needless to say, this is going to cause even more headaches for Midwestern farmers. At this point, millions of acres of prime farmland are not going to be planted at all this year, and there are tens of millions of other acres where crops are really, really struggling. Those farms desperately need some warm, sunny weather for a while, but instead they are about to get hit by another enormous storm. In the end, this could potentially turn out to be the worst growing season in modern history, and it comes at a time when crops are literally failing all over the planet. Sadly, we really struggle to feed everyone on the globe even during the best years, and so what will things look like if worldwide harvests are catastrophic during the second half of 2019?
I want to make it clear that we have not reached a full-blown crisis yet, but what we are seeing are some very early signs of trouble which could greatly escalate in the months ahead.
For example, it is being reported that we are now facing a “shortage of avocados”…
A shortage of avocados has sent prices soaring.
Wholesale prices of avocados are more than double what they were just a year ago.
Most of the extra cost is being passed onto consumers, with retail prices almost doubling.
That is certainly not the end of the world, because we can definitely survive without avocados.
…click on the above link to read the rest of the article…
“It’s A Scary Picture”: Midwest Farming Turmoil Being Compared To 2008 Housing Crisis
“It’s A Scary Picture”: Midwest Farming Turmoil Being Compared To 2008 Housing Crisis
The wettest year in memory continues to decimate corn crops across the midwest, according to Bloomberg.
And it’s not just farmers that are bearing the brunt of the flooding, it’s the entire agricultural economy. Those that provide supplies like seeds, fertilizer, equipment and services are also struggling. For example, BBG reports that “at Burrus Seed in Arenzville, Illinois, employees spend as much time trying to lift farmers’ spirits as they do selling to them.”
Todd Burrus, owner, said:
“If we experienced a year like this, I don’t remember it. When the farm economy is tough, it’s going to be tough for all the suppliers.”
Other Illinois seed business owners echo those sentiments. For instance, business owner Kurt Barman said that he’s being inundated with returns:
“All of the seeds are coming back, so that’s lost revenue for us.”
Now, growers don’t know whether to trade up to newer technology to protect crops and business, or use prior versions. Mark Patrick, chief financial officer of agro-chemical giant Syngenta AG said:
“Couple that with less acres, you’ve got a very acute pressure going on at the moment.”
Those in the fertilizer business have seen urea premiums running at more than double normal levels. The reason for the surge is due to the Mississippi being closed and and the normal flow of crop-nutrient shipments being disrupted.
It’s now being postulated that even the coming $28 billion in tariff aid may not be enough to rescue the Midwest from compounding negative catalysts.
Agricultural credit conditions have also steadily deteriorated. According to the Kansas City Federal Reserve and a Purdue University/CME Group index, “farmer sentiment has plunged to levels not seen since October 2016, the month before Donald Trump’s election victory.”
…click on the above link to read the rest of the article…
