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U.S Drought Lingers Into 2013, Could Pose Long-Term Challenges

U.S Status As Key Agriculture Region Could Be Troublesome If Drought Persists

By , Farms.com

The U.S drought that plagued much of the nation last year, is posing as a threat for 2013 as drought-like weather conditions continue. This will likely be a significant problem as the U.S is one of the key agriculture regions in the world.

In many communities in Nebraska, Kansas, Oklahoma and Texas have seen the worst. In a rural community in Wapanucka, Oklahoma they have lost water all together as the wells have run dry. Officials have since run a line to a neighbouring area for water. While in Texas, state officials are seeking a $2 billion fund in order to finance water projects – as a number of communities are facing shrinking water shortages. The news is even worse for rice farmers in the region, who were told earlier last month that there will most likely not be enough water to irrigate the fields this spring. In Kansas, state officials have enacted penalties for those who exceed water use limits.

The persistent drought is worrisome for farmers who were already hit hard, with multibillions of dollars worth of crop and livestock losses.


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Increased Geo Political Tensions = SELL AMERICA TRADE + Argentina Dry

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Higher geo-politics from Trump wanting to annex Greenlland to conflict with Iran has caused investors to sell everything America. With Matto Grosso Brazil 7% harvested weather has turned wet as harvest progresses but Argentina has turned dry! Both soybean and wheat futures have traded back above the pre-USDA January crop report close a positive technical chart signal. A monster weekly U.S. export report is price supportive but a kick the can down the road on E15 is very disappointing.