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Will the drought affect the economy in the midwest?

Discussion in 'The Okie Corral' started by jame, Jul 17, 2012.

  1. jame

    jame I don't even know....what I'm doing here....

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    It's starting to look like the crop is going to tank here soon.

    While this really sucks for me, (possibility of no farm income this year) will it have a negative impact on the economy?

    We've been relatively lucky. In central Iowa, the economy has been fine, really. Des Moines has a pretty substantial insurance and banking industry, and I don't think unemployment has dropped much below 6%. Restaurants are full. Stores are busy.

    But the Ag sector has been pretty good lately, too, but this is about to change fast.

    In an online world, where communities are now tied by cell towers instead of highways, how will a sagging farm economy affect the economy overall?
     
  2. Atlas

    Atlas transmogrifier

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    I'm in Wisconsin for a few months..
    I keep hearing that farmers here, almost state-wide are expecting a 100% loss.
     

  3. jame

    jame I don't even know....what I'm doing here....

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    It's starting to look the same way here. From what I understand, Indiana and Illinois are already toast.

    The South? Fried. Cattle being sold or sent to slaughter by the truckload. Breeding cows will be at a near all time low, (no feed to feed them) and the cost of beef will rise. Most other food prices heading up are already happening.

    I'm just not sure how much local farm failures affect overall economies. If I have to tough it out for the next year or so, well…..so be it. I'm just sorry to see others suffer due to our failure to produce.

    I saw it happen here in the early 80's, and it wasn't pretty.
     
  4. larry_minn

    larry_minn Silver Member Millennium Member

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    It will effect world wide.
    The way it looks anyway. While its true the farmer gets $.20 for grain in $3.50 box of cereal. Expect prices to increase greatly.
     
  5. Folsom_Prison

    Folsom_Prison Brew Crew

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    I'm in northeast Kansas. I took a ride out the the fab shop in the county over the weekend and was shocked to see how well the corn was looking! It's been dryer than hell around here but If we don't get some rain soon I'm sure it's gonna be a downhill slide for the corn and bean fields before we know it.
     
    Last edited: Jul 17, 2012
  6. Detectorist

    Detectorist

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    The price of some produce is going to be sky high. Missouri and Illinois are taking a beating. Everywhere I go, i can see brown corn stalks.
     
  7. airmotive

    airmotive Tin Kicker

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    Ditto Indiana. The corn fields I walk my dog past every evening are now, officially, DOA. Not a single drop of rain in 45 days, with 32 straight days >90 degrees and the 8-day forecast is just more of the same. It's all gone.
    The crop insurance companies are gonna take a hit this year.
    Your food budget will take a hit later this year.
    I'm just hoping we don't get wildfires rolling through these corn fields like they had out west.
     
  8. Cmacc

    Cmacc

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    "I'm just not sure how much local farm failures affect overall economies. If I have to tough it out for the next year or so, well…..so be it. I'm just sorry to see others suffer due to our failure to produce."


    This kind of thinking used to be more common....it is misplaced guilt but it is still the sign of a healthy attitude. Good to know you fellow Iowan.
     
  9. jason10mm

    jason10mm NRA-GOA-TSRA

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    If ranchers are selling off their cattle to be slaughtered because they can't afford to feed them then shouldn't we see a massive DROP in beef prices now, with a big spike next year? Maybe it would be a good time to fill up the deep freezer...

    Or is the price of beef like gas. ANY instability causes an immediate price spike and it takes months of "situation normal" for prices to creep back to market value, thanks to speculators?
     
  10. Happypuppy

    Happypuppy

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    It has effected it as others pointed out. The corn crop has been hit hard. Look for increases in feed cost , anything using corn syrup.


    Sent using 2 cans and string
     
    Last edited: Jul 17, 2012
  11. farmer-dave

    farmer-dave

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    Besides the jump in grain prices, when farmers aren't making money they don't spend money. Lot's of towns and cities in rural areas will notice.