July 2012

The crops got a little drink in the US today but the drought is still severe. It looks like the combination of extreme heat and little rain will send food prices rocketing. A punishing heat wave in the Midwest on top of the worst drought since 1956 is predicted to result in skyrocketing soybeans, corn and meat. And some communities will impose water controls before the end of the summer.

So, what should we do? We already wrote about Aquaponics which requires very little water as it is recirculated. Read this book: How to Grow More Vegetables (and fruits, nuts, berries, grains, and other crops) than you ever thought possible on less land than you can imagine by John Jeavons

Just a few weeks ago traders were expecting a bumper food crop in 2012, and prices were low. But now a 2008-style food crisis is just around the corner – threatening cities across the globe with social unrest and starvation.

Weird weather, coupled with rampant commodity price speculation, low levels of strategic stockpiling and increases in the price of agricultural staples such as corn, soyabeans and wheat, have created a volatile cocktail. Wheat and corn prices are soaring for the third summer in five years, and the prospect of another price shock is with us once again.

The US drought is the main reason that soybeans are at record prices. And the heatwave currently threatens the US grain harvest. Any further occurence of extreme weather – be it cold or wet or super-hot could tip the global economy into crisis.