From the Wall Street Journal this morning:
"Drought is blistering key U.S. cash crops, further elevating prices for staples including corn and wheat … Farm incomes have been hit hard over the past two years, first when Covid-19 shutdowns hammered prices and afterward when hot, dry weather reduced output, limiting farmers’ capacity to cash in on rising demand and higher prices."
The Journal story goes on:
"Extreme heat is baking most of the U.S. North Dakota, South Dakota, Minnesota, Iowa and Nebraska all contain areas of extreme drought, according to data from the U.S. Drought Monitor. North Dakota and Minnesota, in particular, are experiencing near-record lows in soil moisture, according to data from the National Oceanic and Atmospheric Administration.
"As a result, many crops planted this spring are wilting. Some 63% of the U.S. spring wheat crop is in poor or very poor condition, versus 6% at this time last year, according to Agriculture Department data."
- KC's View:
While lousy weather and drought are part of a natural cycle, the concern that scientists seem to have is that the extended problems being suffered in agricultural regions around the world may have a permanent impact on the cost and availability of basic foods on which we rely and even have taken for granted.
Which, clearly, will have an impact on the retailers who sell these products and the consumers they serve.