Professional Soldiers ® - View Single Post - Historic drought to bring higher food prices, experts say

Flagg · 08-05-2012, 15:17

Is this the possible early signs of 2nd order effects of US drought on ROW?

http://www.nytimes.com/2012/08/04/wo..._r=1&src=rechp

IIRC, the price spike in 2007-2008, followed by the brief commodity crash in 2009 was largely fiscal/monetary policy related.

I wonder how it will play out when you combine the still unresolved fiscal/monetary crisis(chapter 2) with drought?

One of the really interesting developments of the last decade or so is the massive agricultural land development in the developing world.

At the individual and co-op partnership level, professional farmers in the US/Canada/Australia/NZ have been buying large tracts of ag land in places like Brazil and Uraguay and making a 2nd fortune in farming.

At the large corporate and nation state levels, REALLY huge tracts of land have been purchased ...such as leveling native bush in the South West Pacific for Palm Oil(& kernal) plantations that has some characteristics of ethanol policy in the US as well as for national food security in the cases of Saudi Arabia, South Korea, and China buying up large tracts in places like Madagascar and Zimbabwe.

It will be interesting to see how this all develops and learn how it all inter-relates.

08-05-2012, 15:17	#49
Flagg Area Commander Join Date: May 2011 Location: New Zealand Posts: 1,423	Is this the possible early signs of 2nd order effects of US drought on ROW? http://www.nytimes.com/2012/08/04/wo..._r=1&src=rechp IIRC, the price spike in 2007-2008, followed by the brief commodity crash in 2009 was largely fiscal/monetary policy related. I wonder how it will play out when you combine the still unresolved fiscal/monetary crisis(chapter 2) with drought? One of the really interesting developments of the last decade or so is the massive agricultural land development in the developing world. At the individual and co-op partnership level, professional farmers in the US/Canada/Australia/NZ have been buying large tracts of ag land in places like Brazil and Uraguay and making a 2nd fortune in farming. At the large corporate and nation state levels, REALLY huge tracts of land have been purchased ...such as leveling native bush in the South West Pacific for Palm Oil(& kernal) plantations that has some characteristics of ethanol policy in the US as well as for national food security in the cases of Saudi Arabia, South Korea, and China buying up large tracts in places like Madagascar and Zimbabwe. It will be interesting to see how this all develops and learn how it all inter-relates.
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