|Severe Drought Conditions Place Half Of US Counties In National Disaster Status, Causing Shortages That Affect Commodities Prices|
|Thursday, August 02, 2012 04:13|
The extremely hot temperatures across the US have resulted in a declaration of over half of US counties as victims of natural disasters. This is likely to affect commodities prices significantly. There are now 1600 counties eligible for government assistance for losses caused by the drought.
This Website Is For Financial Professionals Only
The area of federally subsidized conservation land available for emergency grazing has also been expanded and crop insurance companies are offering a short grace period so farmers can more easily make their payments.
Disaster declarations make farmers eligible for low interest rate loans to help them weather drought, wildfires, and other disasters. The government assistance makes it easier for farmers to manage rising feed prices, hay shortages that are at critical levels, and pasturelands that are deteriorating.
Shortages are already affecting food prices for companies like McDonald’s, Coca-Cola, Smithfield Foods, and Archer Daniels Midland.