Sunday, November 1, 2009

Congress Created Dust Bowl

"Congress Created Dust Bowl"

That was the slogan on literally dozens of signs on both sides of Interstate 5, north of Los Angeles and south of Sacramento. The high winds of California's Central Valley created dust storms which reduced visibility to virtually zero last Monday, as on acre after hectare sat empty farm fields and orchards. Images of John Steinbeck's "The Grapes of Wrath" came to mind. Apparently, the drought and recession are taking their toll on farmers, as they can no longer afford fertilizer and water. I've read irrigated water costs $600 an acre now, up from $30 an acre pre-drought.

We had plenty of rain (and snow) earlier in 2009, but it has not made up for the previous 3 years of drought. With Las Vegas and southern California's appetite for water increasing annually, northern California and Nevada (the Sierra Nevada) just do not have enough water to distribute to their southerly neighbors.

What will this lead to? California is considered the world's bread basket, feeding half of the US, and a quarter of the world's population. If indeed farmers are letting their crops die and laying idle farm fields statewide, expect to see price increases in your grocery isles. Additionally, a weakened dollar will also increase commodity prices in the COMEX exchange. This will inevitably drive food prices up.

Michelle Obama and her daughters planting seeds for the White House garden wasn't just a Kodak moment--it was an omen.

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