The United States is currently witnessing the worst drought in half a century and additional problems in Eastern Europe have lifted the prices of corn, wheat and soybeans. This has downstream implications too with cattle and poultry feed now pricing higher the additional costs for meat will be passed onto the consumer too. The World Bank Agricultural and Rural Department is urging Nations to ensure that their food stock piles are prepared for the worst. With the euro in turmoil and unemployment high across most of the board, rising grain costs couldn't come at a worse time. As long as Oil prices remain low the World Bank dont believe that this will contribute to a further slowing of the global economy.
The World is better prepared after the lessons of 2007/2008 with more investment in farming and transparency over Agricultural data. The World bank currently invests $US 9.5 Billion in farming a year - up from $2.5 Billion a year in 2008. However with fewer stocks and higher food price volatility it is more difficult for farmers to plan and price their crops.
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