8-27 FB Personal Drought

 You’ve probably seen the map showing the widening drought as a growing red blob spreading across the country. But what does that mean for you? The Department of Agriculture recently released its 1st survey-based crop report. It shows just how badly the drought is hitting the nation’s farm fields. American Farm Bureau Economist Todd Davis has seen the impact firsthand and tells us in this report: “It is very devastating. It is worse than the 88 drought. Psychologically and emotionally as a farmer you invest all your money up front on seed and inputs and you don’t have a chance to get any money back until harvest time. So it is very emotional, sad and frustrating to see this labor of love with her away and die in the field and you see all of your financial investment whither and die with it.”

 Davis says those with crop insurance will be able to cope but he compares it to your home burning down. Even if you have insurance, it is still a big loss. Now how does this affect you personally?  “It will take a while for the effect of this drought to trickle through the marketing channels and get to the consumer level. You might see higher cornflakes and Wheaties costs next year as opposed to egg, dairy and meat prices which you will see later this fall.”