Drought in U.S. reaching levels not seen in 50 years, pushing up crop prices

[Draggingtree]

The Washington Post:

 

View Photo Gallery — The drought of 2012: Effects of the drought are growing. Here is a look at the drought and at effects that may cost the U.S. economy $50 billion.

 

Drought in U.S. reaching levels not seen in 50 years, pushing up crop prices

 

By Peter Whoriskey and Michael A. Fletcher, Published: July 16The Washington Post

A drought gripping the Corn Belt and more than half the United States has reached proportions not seen in more than 50 years, the government reported Monday, jacking up crop prices and threatening to drive up the cost of food.

 

Though agriculture is a small part of the U.S. economy, the shortfall comes as the nation struggles to regain its economic footing. Last week, the Agriculture Department declared more than 1,000 counties in 26 states as natural-disaster areas.

About 55 percent of the continental United States is now designated as in moderate drought or worse, the largest percentage since December 1956, according to the National Climatic Data Center, and the outlook is grim.

“The drought could get a lot worse before it gets better,” said Joe Glauber, chief economist at the Agriculture Department.

Corn is among the most valuable of U.S. crops, and its price has multiple economic ripple effects, reaching into food and energy markets. Rising corn prices mean higher costs for beef producers that use it to feed their livestock. The increase also means Read More

http://www.washingtonpost.com/business/economy/drought-in-us-reaching-levels-not-seen-in-50-years-pushing-up-corn-prices/2012/07/16/gJQA01SopW_story.html