Drought in the Midwest Leading to Consumer Bankruptcy

August 14, 2012

Drought in the Midwest Leading to Consumer Bankruptcy

Midwest Drought to Affect Arizona

The heat is oppressive.  We may not know the full impact of the drought until later this fall, but already the lack of rain in the Midwest is going to impact consumers nationwide.  The drought and heat has already done considerable  and permanent damage to the crops.  The dry, hot weather is devastating to the livelihoods of farmers across the Midwest, but this is a situation in which the entire country is watching, because the weather isn’t just impacting farmers.  Shoppers will see the effects of the hurt corn and soybean crops;  supermarket prices will be higher from everything from milk to meat.  

If you think that you will not be affected by this drought, think again. Every state in the union, Arizona included, will feel the effects of the lack of rainfall and subsequent poor crop yields in the Midwest.  Prices are going to rise, however, your wages will probably remain the same. 

It is certain that we will see more foreclosures in the farming communities, as farmers and ranchers can’t pay their bills.  Some farmers borrow and mortgage for their equipment and seeds, and when the crops don’t provide, it’s trouble.  Still think the drought is just the farmers’ problem?  Ever hear of the Dust Bowl and the dirty 1930’s?  Ok, maybe that is extreme, but surely you remember the drought of 1988?  Any drought leads to changes, and it does affect the economy.  Food prices, fuel prices, rising grain prices, inflation, even water usage for lawns, and recreation are limited.  Yes, things that happen states away can affect you in Arizona.

For the farmers, the stress and pressure escalates as they wait for suitable weather that will improve the situation.  The worries grow, especially for the farmers without insurance.  The crops suffer, their income suffers.   The farmers started planting season with such success, and they had high expectations for the crops.  Now instead of preparing for a bountiful harvest, some may have to deal with the financial implications of no crop, and may even consider filing consumer bankruptcy.

Agriculture is important to our country, to our state, to our county, and to our city, no matter how urban an area you live, droughts in rural America will  affect our economy.  You know, many of us are budgeting our money these days, and this is just another thing that we are going to have to deal with that is going to affect everyone financially.  Consumer bankruptcies will rise because of the higher prices from the drought in the Midwest.

As they say, every cloud has a silver lining ( I know, there ARE no rain clouds! but if there were)…. at least  there are fewer mosquitoes….  Pray for rain for the Midwest and to help the economy of Arizona.

 

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