Environmentalists Destroy Next Year’s Sugar Crop

Worried about genetically modified foods contaminating their precious organic beet supply several green groups filed a lawsuit aimed at ending the use of modified crops by sugar beat farmers. Now a judge has sided with the groups and halted the planting of genetically modified crops. The consequences? Since sugar beets are the main source of U.S. made sugar not only will there be sugar shortages, but all foods that use sugar will inflate in price:

Genetically modified seeds make up 95 percent of the seeds used in growing sugar beets, because they’re resistant to roundup and are cheaper to grow. But the judge found that windblown pollen from the genetically altered beets could contaminate crops in adjoining fields, like organic crops. People in the industry say, while the decision doesn’t affect this year’s beets, it creates a problem for 2011.

“We are in a little bit of a conundrum. We don’t have enough seed to plant a full crop, with conventional seeds next year,” said Duane Grant, Chairman of Snake River Sugar Company.

APHIS, or the Animal and Plant Health Inspection Service, must complete an environmental impact study before any more genetically engineered seeds can be planted. Grant says he would like that study completed soon because his farmers are working with a deadline.

“Our growers are making planting decisions for next year this fall.  We typically order our sugar beet seed in December, and so we’re under a pretty tight timeline,” said Grant.

Putnam says growers in the Gem State can just plant other crops, but sugar beets are the most lucrative. He also said Idaho sugar processors could be in the most trouble, without anything to process until a decision comes down.

“What will they do? Can they sit idle for a year? We don’t know,” said Putnam.

And the biggest impact could be on consumers, considering 50 percent of the nation’s sugar supply comes from beets.

“That is a huge hunk of sugar.  When you take beets out of the equation, then we start running into shortages. We’ll start running into problems. And I think we’ll start to see food prices increase,” said Putnam.

APHIS may adopt interim measures that allow planting of genetically modified sugar beets in 2011. But that would need to happen in a matter of months to give farmers time to plan for next year.

And the chances of the government moving quickly to help these farmers and the sugar industry are slim to none. It’s time to start stockpiling sugar. Right now you can even buy a six pack of 64-ounce canisters for less than $30 online. In a few years, you’ll be lucky to pay $30 for a bag of sugar in your local grocery.

Analysts Warn Rising Grain Prices May Lead to Civil Unrest

Hardly news to anyone with a functioning brain but news organizations are finally starting to report what many of us have been dreading. We don’t have enough food, and people will only put up with hunger for so long:

LONDON, Aug 11 (Reuters) – Rising grain prices from Russia’s drought and fires will pressure populations already hit by the financial crisis and could stoke unrest — particularly in the Middle East, North Africa and parts of Europe.

Wheat prices have risen by nearly 70 percent since June after Russia suffered its worst drought in 130 years and are at their highest since 2008, when the last major food price rally sparked protests and riots in a string of emerging nations.

Analysts warn that if prices stay high then the threat of street violence will increase — at least up to a point.

“We could see some street riots but I wouldn’t expect any governments to fall,” said Jonathan Wood, global issues analyst for consultancy Control Risks.

“On one level, we have much less of a problem than in 2008 because we have better food stocks. On the other hand, because of the financial crisis many countries are not in such a good position financially to deal with it.”

Particularly in emerging markets where food makes up a higher proportion of household purchases, the price rise could filter through in inflation, rate hikes and wider deficits.

The Middle East and North Africa, particularly Egypt, are regarded as particularly vulnerable, as are emerging and southern European countries where discontent has already been fuelled by harsh cuts in public spending, benefits and pay .

“Grain imports are particularly sensitive in the Middle East and North Africa — bread is such a crucial staple of the diet,” said Metsa Rahimi, analyst at security consultant Janusian. “Eastern Europe is also an obvious area of risk.”

Europe has seen less social unrest than many expected from the financial crisis — although riots in Greece in May unsettled global markets — but risks are expected to rise in the autumn as unions call strikes and spending cuts bite.

The article goes on to pick out Egypt as particularly vulnerable and reports there’s already been food related unrest there. But my money is on Europe, especially Western Europe, for real rioting. The people there are unused to being hungry and have been told for generations they “have a right” to food that the government will magically provide.

But America will be no picnic as the boomers and each subsequent generation has developed outrageous senses of entitlement. What will happen here when bread is $5 and shelves are empty?

That’s why I have food stored up, including those nifty emergency food buckets in case I have to pick up and leave. Do you?

Low Temperatures Keeping Fruits and Vegetables from Ripening in California

It’s one of the coldest summers on record, despite what people would have you believe. And that means less food:

It hasn’t been the coolest summer on record, but it’s been close, forecasters say.

The average temperature in July was 79 degrees, five degrees below normal, and the first eight days of this month also have been five to six degrees below normal, weather experts said.

Sounds nice right? Wrong:

But some plants could be affected by the cold nights and cooler mornings, Morganelli said. Citing only what she’s seen happening this summer at the Arboretum, where overnight lows have dipped into the mid-50s, Morganelli said she’s noticed more yellow in the leaves of some flowering plants, particularly roses.

“The fruits and vegetables, the tomatoes and a lot of the citrus and things like raspberries are not ripening up because it’s not getting hot long enough,” she said, adding that some fruit could taste less sweet because less sun means less sugar content.

Morganalli said she has picked just one fully ripened tomato so far from her own summer garden.

Not by Fire but by Ice.

Bummer for gardeners, but really bad news for consumers as agriculture struggles with the crops. Food inflation, as I’ve said over and over, is about to be your biggest concern, and access to nutritious fruits and vegetables are something we’ve learned to take for granted. Maybe not any more. Get prepared.

h/t Drudge

Putin Bans Wheat Exports From Russia

Ready for those food shortages? The world is running low and governments are taking steps to ensure they’re supplies. Are you?

MOSCOW (AFP) – Russia, the world’s third wheat exporter, Thursday banned grain exports for the next four-and-a-half months due to a record drought that has destroyed millions of hectares (acres) of its land.

Wheat futures shot up to new two-year highs on commodities markets after the sudden announcement from Prime Minister Vladimir Putin raised concerns about global grain supplies.

“In connection with the unusually high temperatures and the drought, I consider it right to impose a temporary ban on the export from Russia of grain and other products produced from grain,” Putin told a government meeting.

Russia earlier this week slashed its 2010 grain harvest forecast to 70-75 million tonnes, compared with a harvest of 97 million tonnes in 2009, owing to the worst drought for decades.

Last year, Russia exported 21.4 million tonnes of grain and observers had already warned that could be sharply lower this year owing to the drought.

The prime minister’s spokesman Dmitry Peskov said the export ban would come into force August 15 and remain in place until December 31.

“We must not allow an increase in domestic prices and must preserve the headcount of our cattle,” Putin said in comments broadcast on state television.

Putin signed a decree imposing the ban which also stated that Russia would ask fellow members of a regional customs union — Belarus and Kazhakhstan — to make a similar move. Kazakhstan is also a major world grain exporter.

“There can only be one comment — shock,” said Vladimir Petrichenko, director of the Prozerno agricultural analytical firm.

“We will only be able to return to the global markets with a tarnished reputation, with losses,” he told Interfax.

Russia’s policy after December 31 would be determined by the results of the harvest, Putin said. Russia has seen 20 percent of its arable land (10 million hectares, 24.7 million acres) destroyed in the heatwave.

The severity of the drought has seen states of emergency declared in 27 regions and dealt a major blow to Russia’s ambitions of ramping up its global market share over the next years.

Putin also announced that agriculture producers who had suffered as a result of the drought would receive financial aid totalling 35 billion rubles (1.17 billion dollars).

Concerns about Russia — coupled with a drought that has also hit Ukraine and Kazakhstan as well as a low harvest in Canada — had already led to a spike in global wheat prices to two-year highs.

Buying buckets of wheat online is looking better all the time.

Jim Rogers Sees “Much Higher” Food Prices on the Horizon

I’ve been warning about the coming food shortages and food inflation for months, and more people rely on less farmers to feed them and those farmers must pay higher prices to grow crops. Jim Rogers reacts to the spike in wheat prices by saying what smart people knew all along, food is going to get more and more expensive:

The July rise in wheat prices, the fastest in 51 years, indicates that shortages in agriculture are coming, Jim Rogers, chairman of Rogers Holdings, told CNBC.com Tuesday.

Wheat prices in Europe hit their highest level in two years, rising almost 50 percent since late June as Russia’s wheat crop was affected by drought.

“That’s the straw that broke the camel’s back,” Rogers, who has been warning about shortages coming in the agriculture sector for a while, said in a telephone interview.

“We’re going to have much, much higher prices over the next few years,” Rogers, a hedge-fund pioneer who started the Quantum Fund with George Soros in the 1970s, added.

Investors finally began to realize that prices for agricultural commodities have been too low for too long because of subsidies and other factors, which made agriculture an unattractive area for workers, he explained.

“Be prepared, if you have a sugar bowl home go fill it up because it’s going to be more expensive,” he said.

“Anybody who’s got potentially good agriculture land and good weather” is likely to emerge a winner out of this situation because prices of nearly all agricultural commodities are set for steep rises, Rogers said.

“Prices aren’t high enough and most people don’t believe it,” he said. “Unless prices are high you’re not going to attract people in the business. Eventually people will go into farming again but it’s going to take a while.”

Shortages in agriculture are likely to add to problems created by governments who printed money to spend their way out of the financial crisis, according to Rogers.

“It’s all happening at a time when governments are printing more money… it’s a very dangerous situation,” he said.

Roger’s advice is for investors, but his message is clear to all of us. Food is a commodity that will be increasing in price, so your family should be preparing for a future where food will become increasingly harder to get. Storing long lasting foods (including wheat and rice) will save you money in the long term. Learning to grow your own food, even if you don’t have much room, will help offset the price increases we’re going to see. How much of a price increase? In England they’re predicting at least a 10% increase by the end of this year.

Most big box stores with good online presences sell grains and rice in bulk buckets for cheap. I’ve found 35lbs of wheat seed for $50 on Amazon. Frankly I prefer to just hit the can sales at my local market but I know many of you out there enjoy a more cooking from scratch kind of existence. I’m happy with canned corn and tomato soup. Which I have a lot of.

I cannot stress this enough. You must start buying long lasting foods now while they are still reasonably priced. Canned foods, rice, beans, sugar, flour and honey. Fears of global wheat shortages are only the beginning. All food prices will rise in the next few years, some to levels that will make them unattainable. Deflation in our economy may make things cheaper in the short term but it will put many agri-businesses under too much stress. Your extra money right now should, at least in part, go to having a fully stocked pantry, a good garden and if you can maybe a couple of chickens.

Food will be the new gold in the near future.