Learning from the Drought of ’12
The news outlets love a good disaster, and we’ve all been informed daily of the mega-drought in the Midwest. Three quarters of the US corn crop is under drought. Corn prices are up over 50% in the last month, soybeans are up almost 30%, and the USDA says they are still assessing the damage. No rain in sight yet and when combined with record low carryover stocks, we’re probably looking at another record spike in prices. What I haven’t heard in the news is any discussion over whether we have other options to avoid these increasingly regular crop disasters.


