27% of the agricultural land in the western United States has to deal with a so-called megadrought. This not only has major consequences for the climate. Farms auction their livestock. To be able to pay the bill. To give you an idea, normally it would be about 400 to 600 head of cattle. Now there are about 1200. per week.
It’s not that farms want to get rid of their livestock. Due to the drought, the price of maize has gone through the roof. The food is simply too expensive. In concrete terms, it means that between a quarter and half of the livestock is auctioned. It is simply too expensive to feed them. This has clear consequences. For example, the price of meat will rise sharply.
While the BBQ season is coming. Add to that the fact that in more and more areas the prices are already at absurdly high prices. Another example. You are undoubtedly familiar with the 85-year-old Hoover dam. A dam that produces hydropower and has to hold backwater. Make sure less evaporates. Well, that production of electricity has decreased by 25%. it is assumed that the water level will drop to such an extent that the dam simply no longer produces electricity. As a result, the government under President Biden will declare a water shortage.
This means that farmers get less water to irrigate. Which pushes food prices even higher. But the situation is not unique. In California, farmers don’t get any water at all. That means that on 500,000 hectares, you see, they are not going to grow anything. This is going to cause major problems in the US. In California, they grow more than a third of the vegetables and two-thirds of the fruit and nuts. So what’s the solution? Considering that in South America, the logical areas to import, the drought is also increasing. It should come as no surprise that food prices are going through the roof. The current price level is unsustainable for more and more American households. What will happen if people can no longer buy food? The global food supply is increasingly at risk. The global food supply is in an increasingly precarious situation. Which means that prices will only raise more. Which Will Translate into more opportunities to realize significant returns. The only question is whether you are prepared, or whether you will join the queue at the back of the supermarket.