Risk Rap

Rapping About a World at Risk

Eco and Econ Hardship of the Iowa Floods

Just when the price of corn was hitting $7 a bushel, Iowa’s farmers were counting on making a killing this year. The rise in the price of agricultural products due to increased global demand was one of this years few favorable economic developments that farmers were looking to capitalize on. Unfortunately Mother Nature threw them an awful curve ball and wiped out many farms that abutted the angry rivers of the Midwest. The loss of 10% of the states corn yields, has also hurt soybeans and other crops. Though it will certainly drive prices even higher, for the farmers whose fields are underwater , this year will bring financial hardship not abundance as some have thought only a week or two ago.

Longer term the floods destruction may also significantly damage soil and water quality due to the spread of toxins, hazardous waste, dead farm animals and other industrial pollutants rippling through the farmlands as the flood spreads. If 10% of the areas farmland is affected this will command a premium on agricultural futures for years to come.

Eventually, the flood waters will drain off from the once rich arable soil, carrying with it all the fertilizers, petroleum by products and other effluents into the Mississippi River. As it passes New Orleans it won’t be far from its final destination where it can cause considerable damage to the waters of The Gulf of Mexico and its struggling aquaculture and fishing industries.

The Army Corps of Engineers has issued 13 million sandbags. Those sandbags will have to be hand filled. The amount of labor, energy and resources expended to fill those bags in a valiant struggle to buttress failing levee systems is a testament to the American spirit to endure.

As we tally the awful cost of this catastrophic event lets be mindful that investment in our infrastructure is a critical issue that is central to our national defense. I can’t help but think what a wise decision a $2 billion investment in levees would have returned to this country in saved expense and opportunity cost. The old adage that an ounce of prevention is worth a pound of cure is sure sage advice that unfortunately we always seem to dismiss as a meaningless cliche.

We’ll close this post with a favorite from the old Granges of the Midwest.

Let’s listen to Woody Guthrie sing “This land is Your Land.”

Risk: infrastructure, agriculture, aquaculture, water, Mississippi River, Gulf of Mexico, inflation, arable land, crop yields

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June 18, 2008 - Posted by | environment, folk, homelessness, infrastructure, risk management | , , , , , , , , ,

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