Potential Huge Crop Insurance Losses Resulting From Drought

The Midwest drought in the USA during the summer of 2012 could possibly result in crop insurance losses of $13 - 20 billion!  The drought has been hammering farmers all over the heartland of America, and even though it has shown signs of letting up and giving much needed relief it has not come soon enough for many.  The lack of water and rain to provide to their acres of crops has caused many sleepless nights and hope for government loans or crop purchasing programs.

These figures recently came from disaster modeler AIR Worldwide, and they mention that even with government subsidies and recoveries, crop insurers could still be anywhere from $1 billion to $3 billion in the hole when all is said and done!  Farmers who have purchased yield shortfall insurance should be able to survive unscathed, but the insurers will take a major hit from this drought.  

Corn and soybean crop losses are expected to surpass the 1988 drought with regards to overall numbers. The 1988 drought was the most severe in the last 25 years until this year, resulting in $77.6 billion in losses adjusted for 2012 dollars.  Last year in Texas, agricultural losses were recorded at almost $8 billion with crop insurance losses of $2.5 billion, and this year is looking to be worse.   

Because of the hottest July on record, 2012 losses should easily surpass 1988.  Luckily, the signs are pointing to a much wetter season and with it a better growing season next year.  Hurricane Isaac is presently tracking to head up into the heartland of America and bringing with it incredible amounts of rain which will do wonders to the rain parched areas in that region.  Isaac is a slow moving storm, which leads to dropping more rain over a wider area, and it is also huge in breadth and width!  One storm will not completely break a drought, but it will provide immediate relief to those in its path.

The right produce ordering software and customer support online system can really help a company inject the right degree of technology into their business to help streamline it and create happier customers!  When a customer is able to go online and order directly from a produce distributors website it gives them a sense of empowerment knowing that they can order at any time and also be able to confirm their order before submitting it.  Good customer service is the lifeblood of any business!

Recent Produce Recalls in the USA, Federal Relief for Drought-Stricken Farmers, and Produce Ordering Software

There have been several instances of various produce being recalled in the last few days due to possible contamination by bacteria that could cause illness.  In at least one case, the recall was based on a random sample by the Canadian Food Inspection Agency, with no reports of sickness due to the consumption of the product in question.  It is good to know that the system is working to prevent possible widespread exposure to the mass of consumers, even if it may cause temporary hardship to those in the produce industry.  It is always better to be safe now than sorry later.

A Northern California produce supplier has decided to voluntarily recall romaine lettuce shipped to 19 states, Canada, and Puerto Rico over the possibility that there was E. coli contamination.  The recall is limited to a single lot that was available in retail stores starting on August 2^nd.   Only about 2100 cases were possibly affected, with either 12 or 18 heads in each case.  

Another possible contamination risk comes from a North Carolina farm, which is recalling 580 cases of cantaloupes that could have come into contact with listeria.  These cantaloupes were shipped on July 15^th, and carry a red label with Burch Farms.  Destroy these melons if you have any in your possession.

The record setting drought in the Midwest has really affected farmers trying to eke out a living, but now the Federal Government is finally stepping in to help out.  Multiple federal agencies in a multi-million dollar effort are working to provide farmers with financial and technical assistance where needed.  The Agriculture Department, Transportation Department, and even the Coast Guard are helping out where they can.  The government is buying as much as $170 million of lamb, chicken, pork, and catfish to help with the high cost of animal feed.

The drought is expected to last until at least November, and has resulted in very dry conditions all over the United States, and could end up costing the country at least $50 billion!  Even though recent rain has started some areas on the road to recovery, some major crops have yet to realize the full impact of the drought.  Corn and soybeans in particular, will have to wait until harvest time before that is known.

Whether or not the administration’s efforts are coming soon enough is something that only time will tell, and it may be late September before farms and produce growers feel any relief.  Hopefully this drought will end soon and farmers will be able to go back to doing what they know best, growing crops and produce for the world!  Efficiency and making sure that the company’s business processes are sound will go a long way to ensure long term profits in this industry, and having the right produce ordering software system can help to get you there!

How Severe is the Current U.S. 2012 Drought?

The current drought in the United States has silently crept up on millions of people, and today it is a big issue as far as how it will affect food prices in the future.  But farmers and food producers have known the true severity for many months now, but hoping for the best and for a break in the weather system to bring in more rain.  The latest information on the U.S. drought is that it is fifth worst on the all-time drought list, and rapidly closing in on the next three positions!

The worst drought in United States history took place during the dust bowl days of July 1934 where almost 80% of the country was under drought conditions and that is a record that won’t soon be broken.  As of right now, the current situation is that 57.2% of the country is undergoing very dry conditions.  Fourth place on the all-time list goes back to December 1956, with 57.6%, third place being July 1954 with 60.4%, and second place with 62.1% in December 1939.

So we can see that current conditions are quite severe and it won’t take very much for us to reach the second position for all time droughts!  This data go back as far as 1895, when records started being recorded.  This information was just released by the National Climatic Data Center, and shows how much the dry conditions might be affecting farmers and food producers.  The intensity of the drought is also worsening, with a higher percentage of the country in “severe” to “extreme” drought from the previous month.

The news is not all bad, as parts of the country are starting to experience a higher rainfall rate than earlier in the year.  However, all of these dry conditions will probably spell higher food prices at the market as growers try to make back some of their losses while they can.  Consumers will most likely feel the pinch at the grocery store this fall, but already produce prices have started inching up.  In fact, the last two years have seen a pretty sizable increase in prices as worldwide food supply has not kept up with demand.  Food prices can only continue to climb over time, and this drought can only help that trend.

In certain parts of the country there are ongoing battles over water rights and how much of it can be accessed by farms and growers, and since there is only so much fresh water to go around this will be an issue to complicate matters for years to come.  The United States is still the breadbasket of the world however, and our farms are very important to keeping everyone fed.  Bad conditions here can steamroll and possibly mean that some parts of the world will go hungry or have to fend for themselves.  So it is vitally important for us to persevere as a vital industry and make it through the rough times as well as possible.  A company can help to stay current and relevant in the marketplace today through the use of a proper and robust produce software and customer ordering system.

The London Olympics, Intalogix, and Produce Ordering Software

Here we are just sliding into August now, and we are enjoying the beautiful summer days and great weather!  The 2012 Olympics in London are almost halfway through and it looks like the United States is doing very well in the medal count!  We here at Intalogix support our team and congratulate all of the fine athletes that have made it to the Olympics!  We wish them well for the remaining competition and also for a safe return home.

Even though the heat of the summer has slowed down many a company, Intalogix is moving full steam ahead with development and testing of our new suite of products planned for the future!  Even though we have established ourselves in the produce order software niche as an industry leader, we are not resting on our laurels.  There is an incredible need for hand held and mobile devices to access the OneLink ordering software system, and because of that we are well under way with that new product due for release sometime this fall.

There are many upgrades and implementations the company has planned, and we are always preparing for and working hard to defend our position as the produce software industry leader!  Intalogix has been highly successful in the produce ordering software niche because of highly loyal customers and brand recognition.  Because of our incredibly loyal clients who are very satisfied with our product and customer service, we are also able to generate many referrals from them.

We have also begun an intense sales and marketing campaign to maintain our name brand and recognition potential at a high level, and we are increasing our internet marketing efforts in order to reach others who may be looking to become more online customer savvy, or to upgrade their existing produce software for better performance or to increase their functionality.  The right online ordering software can really help a company increase their bottom line through a greatly reduced customer support department, but it can also empower the customer to be able to order by themselves at any time of the day or night.

Other companies in this industry may be relaxing and coasting on what they have accomplished in the past, but Intalogix Corporation is forging ahead with innovation and ingenuity!  We are very excited about the future and what it holds for the company and the industry, and we will work hard to keep meeting any needs that come up!  More to come, so stay tuned!