"The U.S. cattle herd is at its lowest level since 1952. Increased feed costs resulting from the prolonged drought, combined with herd liquidations by cattle ranchers, are severely and adversely contributing to the challenging business conditions we face as an industry," John Keating, president of Cargill Beef, told Reuters.
Ominously, the journal Nature Climate Change predicts the U.S. likely faces severe droughts over the next 30 years. And Climate Central climatologist Heidi Cullen says "the weather of the future is going to be more extreme. That means more extreme heat, extreme storms, extreme drought."
"Just like in the days of the Dust Bowl, a way of life is under threat here, as are the livelihoods of millions of people," Abramsky writes. "If the weather chaos of the past few years becomes a new norm, the stability of the U.S. and global food systems could come under threat---tightening supplies, (and)increasing prices"---as well as pushing American farmers off their land.
Farmers are seeing their arable land dwindle before their eyes and are ever more reliant on crop insurance payouts to cover basic operating costs. A farmer may have to shell out $20,000 or $30,000 to a private insurer for crop insurance, to insure the value of up to 75% of the crop. The private insurance firms are backed by the federal government which covers 60% of their costs.
"At the moment, farmers are surviving on grittiness, technological creativity and crop insurance," Abramsky reports. "But the payouts are subject to the law of diminishing returns: each year's payout is based on the average value of the previous ten years' crops. Meanwhile, because insurance companies are disbursing record amounts to farmers, premiums are going up."
P.S. While 57% of President Obama's budget goes to the Pentagon only 1% of his budget is earmarked to help American agriculture. #
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