The Rural Mainstreet Index decreased to 47.9 from 56.7 in July to its lowest level since September of 2010. The farm equipment sales index decreased significantly to 46.1 from June’s 54.7, its lowest level since 2009. The drought has now spread like cancer into the key ag state, Iowa.
Bloomberg describes the weather pattern– globally, including in southern Europe where the corn crop is also diminished.
The Ukraine is looking at 20% crop loss.
The ag rout is ongoing globally as India also faces a diaster.
The rains were at least 22 percent below normal, several states faced drought and farmers feared grave losses. Some analysts put the rain deficit at 31 percent. A drought would be devastating since about 60 percent of India’s population work in agriculture and that sector contributes 16 to 20 percent of the nation’s gross domestic product. It could also worsen inflation of food prices.
Incredibly photos of Greenland show a rapid slush melt in the course of only four days. This weather impact situation is just getting started.
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