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The Drought Impacts Economy

Corn Crop Affected by Drought

 

The drought in 10 Midwest and Western States is taking its toll on the crops and the economy. According to the Rural Mainstreet Index, the economy dropped further into negative territory this month.  Creighton University economist Ernie Goss says the drought is “dampening economic activity across the region.”

And the recent rains in the Midwest have come too late to help the sagging crops. MDA EarthSat Weather meteorologist Don Keeney told Reuters that “There were some decent rains in central Illinois and west central Indiana yesterday, but it’s too late for corn and too late for most of the bean crop.”

Reuters also reported

The U.S. Department of Agriculture (USDA) already has made deep cuts for this year’s corn and soybean output as the drought spread through America’s bread basket. The agency said the 2012 corn crop would fall below 11.0 billion bushels for the first time in six years and the number of bushels yielded per acre was at a 17-year low. Soybean production was forecast at a five-year low and soy yield per acre at nearly a 10-year low. Analysts and crop experts said additional cuts may be seen in future reports.

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