U.S. Crop Damage from Weather Tops $8 Billion
June 26th, 2008Via: Reuters:
From the worst floods in the Midwest grain belt in 15 years to drought in California, damage to crops from inclement weather has topped $8 billion so far this year, the largest U.S. farm group said on Wednesday.
The damage could rise or contract, depending on weather conditions for the rest of the growing season in the United States, the world’s top exporter of corn, soybeans and wheat, the American Farm Bureau Federation said.
The flood damage in the Midwest over the past two weeks has lifted prices for U.S. corn, used for food, renewable fuel ethanol and animal feed, to a record high above $7 a bushel, up about 85 percent since the end of 2006 as of Wednesday.
The AFBF said leading farm state Iowa accounted for about half of the damage.
“Wet weather and flooding create issues, as farmers are unable to plant their crops,” said AFBF senior economist Terry Francl. “The crops they do plant do not sprout and grow, resulting in few acres harvest.”
“Additionally, the difficult growing conditions greatly reduce the yield of the crop that is harvested,” he added.
