There have been a number of stories this week on climate impacts on agriculture. The earthquake in Napa Valley also had impacts on the current wine year, although fortunately the timing reduced the potential cost of this disaster. Here are a few of the stories:
Guatemala’s government declared an emergency due to one of the worst droughts the country has ever experienced. The rainy season normally lasts from May through October, but rains have been absent since the beginning of June, according to a report in International Business News. This has resulted in losses to staples like beans and corn and could cost the country millions in agricultural losses. You can read the story by clicking here.
Georgia farmers face a bleak market for corn this year due to nearly ideal growing conditions in the Midwest corn belt, according to a story in Growing Georgia. Record yields are driving prices down to values below the costs of production. According to Nathan Smith, a UGA agricultural economist, quoted in the story available here, cotton and peanuts are not good options either, with prices low in both of those commodities as well. Corn stored in previous years is also adding to the glut of corn that will soon be available.
Growing Georgia also reported that the US dairy herd is up 37,000 head from last year at the same time in a story available here. Pleasant weather in the Midwest and cooler weather in California has resulted in increased milk production, although triple digit temperatures in the South have increased stress and reduced production there.
The earthquake in California had a negative impact on the wine industry in Napa Valley and surrounding areas. Reuters reported that estimated insured losses from the quake could be hundreds of millions of dollars, but total losses could be several times higher. Many barrels and bottles were shattered in the 6.0 magnitude quake. However, the story pointed out that “the timing of the quake helped (various) wineries escape major production setbacks because it struck after the 2013 vintage had been bottled and sent off for delivery but before most of the grapes were ready to be picked.” The 2014 vintage is expected to be excellent in spite of the losses and the earthquake losses may drive up prices of remaining stock.
