Drought Hitting Midwest Hard, Spreading Rapidly
St. Louis Post-Dispatch -- July 21, 2012 -- The U.S. Department of Agriculture on Friday said the drought gripping the country has expanded rapidly and appears likely to last through the summer.As of this Tuesday, the drought was covering 64 percent of the lower 48 states, making it the most widespread since 1956. Three months ago, the figure was 37 percent, and at the beginning of the year, 28 percent.
The situation in the Midwest is particularly bad, the department said, with 88 percent of the country's corn and 87 percent of the soybeans now in drought areas.
Both corn and soybean prices rose to record highs Friday, hitting $8.08 and $17.54 a bushel respectively, as crop shortfalls seem increasingly likely and drought conditions are forecast to remain throughout most of the Midwest.
Last week, the Agriculture Secretary Thomas Vilsack announced a new rule simplifying the process for declaring disaster areas, which meant 1,055 counties could get expedited disaster status. This week, all of Missouri was declared a primary disaster area, enabling farmers here to apply for federal assistance. The total number of counties with disaster status stands at 1,297, in 29 states.
The department also announced reduced interest rates on emergency loans and lowered payment reductions on conservation lands that qualify for emergency haying and grazing.
Vilsack said that department officials are traveling around the country to assess the effect of the drought.
In an address, Vilsack used the drought to push for passage of the 2012 Farm Bill, saying disaster programs expired under the current bill.
"All of us across America hope for rainfall," Vilsack said, "and while USDA does all it can to assist America's farmers, ranchers and rural communities, I hope that Congress will do all it can to help us get the job done."
(c)2012 the St. Louis Post-Dispatch
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