Make no mistake about it: Government subsidies are to blame for creating this situation in the first place
Much of North America is in the midst of a debilitating heat wave, and while the high temperatures may be an annoyance to city dwellers, they threaten the livelihood of many farmers — which could end up hurting us all.
In the U.S. it’s being called the worst drought since 1956, affecting 60% of the country, with many counties being declared disaster areas. Corn, which requires large amounts of water, has been particularly hard hit, with U.S. production shrinking by 23% from what was originally forecast, and some analysts predicting close to one-quarter of this year’s crop could be lost.
The price of the grain has increased 40% in the past couple of months, reaching a record high. With corn now used to produce everything from animal feedstock, to synthetic sugar, alcohol and gasoline, consumers on both sides of the border are preparing for a sharp increase in the cost of living.
Corn is now used in three-quarters of all the products sold in U.S. grocery stores, many of which are exported to Canadian consumers as well.
Read more: http://opinion.financialpost.com/2012/08/08/crop-subsidies-distort-the-market/
Much of North America is in the midst of a debilitating heat wave, and while the high temperatures may be an annoyance to city dwellers, they threaten the livelihood of many farmers — which could end up hurting us all.
In the U.S. it’s being called the worst drought since 1956, affecting 60% of the country, with many counties being declared disaster areas. Corn, which requires large amounts of water, has been particularly hard hit, with U.S. production shrinking by 23% from what was originally forecast, and some analysts predicting close to one-quarter of this year’s crop could be lost.
The price of the grain has increased 40% in the past couple of months, reaching a record high. With corn now used to produce everything from animal feedstock, to synthetic sugar, alcohol and gasoline, consumers on both sides of the border are preparing for a sharp increase in the cost of living.
Corn is now used in three-quarters of all the products sold in U.S. grocery stores, many of which are exported to Canadian consumers as well.
Read more: http://opinion.financialpost.com/2012/08/08/crop-subsidies-distort-the-market/
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