The worst U.S. drought in more than five decades is forecast to raise farm profits to a record $122.2 billion this year as higher prices and insurance payments outweigh crop losses from the dry conditions.
Income will rise 3.7 percent from a revised $117.9 billion in 2011, the U.S. Department of Agriculture said Tuesday in a report on its website. The forecast is up from $91.7 billion in February.
In related news, I cancelled more classes this year due to bad weather (i.e., I don't like to walk around campus in the rain) and my income has gone up 3.7% as a result. I love the NC state university system!
Gosh, what are our sheep-killing, camera-stealing, Rusty-menacing doofuses up to now? Just a little light illegal organ harvesting, that’s all! Say, what do you suppose those “other parts” the dark-haired fellow is referring to might be? (SPOILER: Probably aphrodisiacal bear penis.) I also like the way this fellow carefully explains to his friend why his bear-bagging idea is so potentially lucrative. You’d think he’d already know this, but maybe not? “Black market? I … I thought we would just go out and hunt for the sport of it. You know, you and me, in the wilderness, testing ourselves against nature, really getting to know each other … God, I feel like such a fool.”
Someone told me that if you follow the second link you'll learn that a "fortune" is no more than $5000:
A bear gall bladder can fetch up to $5,000 on the black market ... where at least some people believe it contains medicinal qualities.
Danny Hall’s quarter horse, Flash, is more than just livestock. He’s a companion.
But hay crops have not fared well during the dry, hot summer, and skyrocketing prices have compelled Hall to make a tough decision. The 50-year-old resident of Millersport, in Fairfield County, is searching for a new home for Flash, and will give the horse to anyone who is a good fit.
“We just can’t afford to keep him anymore,” said Hall, who works at Nationwide in Columbus.
He and his family are sad at the prospect of saying goodbye to the 25-year-old horse they acquired in 2008. “He’s just a wonderful old soul,” Hall said.
Hall used to be able to get a round bale of hay for as little as $12, but now that price has risen to as much as $60, he said. He’s able to find round bales for $35 if he looks hard enough.
A decrease in the supply of hay due to the drought causes an increase in hay prices (an input into horse 'production'--or in this case the enjoyment of horses). An increase in input prices causes a decrease in the supply of the output (horse enjoyment).
This summer, corn prices are high. Drought, extreme weather, and other factors combine to increase corn prices, and one of those factors is the federal ethanol mandate/renewable fuels requirement implemented over 20 years ago (as an oxygenate requirement) and extended in 2005. Roger Pielke Jr. points to a Purdue research paper that suggests that a waiver or partial removal of the renewable fuel standard could reduce corn prices by 20% or more. ...
This year’s drought has been painful and costly, but if in the process it leads to the demise of ethanol subsidies, boutique fuels, and the renewable fuels standard, that’s what I call a silver lining.
... the Environmental Economics blog ... is now the default homepage on my browser (but then again, I guess I am a wonk -- a word I learned on the E.E. blog). That is a very nice service to the profession. -- Anonymous
"... I try and read the blog everyday and have pointed it out to other faculty who have their students read it for class. It is truly one of the best things in the blogosphere." -- Anonymous