Drought Hammers U.S. Food Production

The United States is experiencing its worst drought since 1956, with 55 percent of the country being affected by the lack of rain. Not only are corn and soybean yields down, but the crops that are harvested are suffering from poor quality.

Meanwhile, as poor grain production has caused feed prices to climb, ranchers are being forced to cull their herds. The breeding stock of beef cattle in the U.S. has now been reduced to fewer than 98 million, the lowest number in four decades.

In a bid to help farmers by raising the price of meat, the federal government has ordered the Department of Agriculture and the Department of Defense to spend millions purchasing beef, pork, chicken and even catfish. The side effect, however, is that the rest of the nation will also experience an increase in food prices.

Ironically, due to government subsidies, many farms will make more money plowing their crops under than they would have in a normal harvest. Since government farm insurance pays damages at the going rate, many farmers will reap large payoffs by filing claims for lost crops. Many of those who will benefit the most are large agribusinesses. In fact, the agricultural lobby has convinced the current administration to increase farm insurance subsidies.

Unfortunately, the taxpayer is left with the bill at a time when America’s economy is already withered.

While big agriculture businesses may gain from the ongoing drought, the average American—and much of the rest of the world—will only experience higher prices at the grocery store.