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Drought worsens, farm bill stalls, prices rise

Jul 26, 2012 5:37 am
Al Jazeera English reports that this summer's record drought across the United States will drive food prices up by three or four percent next year, according to the Department of Agriculture. "In 2013 as a result of this drought we are looking at above-normal food price inflation. ... Consumers are certainly going to feel it," USDA economist Richard Volpe said on Wednesday. Meat prices are expected even higher, up to a five percent hike. "The drought has sent corn, soybean and other commodity prices soaring in recent weeks as fields dry out and crops wither across much of the country's midsection." A commodities trader in Chicago, Scott Shellady, told Al Jazeera that the corn shortage could affect other countries because U.S. food exports have increased dramatically in the last couple of decades. "So we have an issue here where we have been feeding the world, but we're going to have to slowly but surely dampen down those exports," Shellady said. Also on Wed., July 25, Reuters reports that the $491 billion farm bill has, "stalled in the House of Representatives on concerns there are not enough votes in the Republican-controlled chamber to pass a bill many see as too costly." Congress will recess next week until Sept. 10.
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