To spend $ 170 million order to help farmers tide over the crisis
U.S. Department of Agriculture said in a statement, the Government of the meat is to do everything possible to help the seriously drought-affected farmers and herdsmen, small business owners and community. Just set foot on the three-day "Iowa canvassing tour" of Obama supporters said on Monday: which right now is in a difficult period for the farmers is a big plus.
Iowa, known as the "granary", rich in corn, soybeans, pork and other agricultural products, including corn and pork production in the U.S. the top. The state is about the U.S. elections, and a fortress. According to statistics, Obama and Romney "burn" up to a few big states, Iowa ranks third, behind Ohio and Florida.
Affected by dry weather, U.S. corn prices have risen nearly 60% since mid-June and continue reaching record highs. Although some people worry that the dry weather will eventually push meat prices by increasing the cost of feed, but recently the price of meat in the United States has a lower signs. The main reason is that, in order to avoid responsibility for further increases in feed costs, farmers have ahead of slaughtered livestock and sold. Supply a substantial increase in short-term, downward pressure to the price of meat.
In addition to the $ 170 million above the procurement plan, Obama also instructed the U.S. Department of Defense earlier meat procurement. The Pentagon issued a statement on Monday said it would re-evaluate this year's meat procurement plan to determine whether early implementation of the procurement. The Pentagon has always been a meat big order of about 94 million pounds of beef a year, 64 million pounds of pork and 500,000 lbs of lamb.
Instead of doing the meat large as changes in energy policy
News by the government meat, pig futures prices in the United States rose in Monday, the Chicago Mercantile Exchange, the contract rose as much as 2.7 percent in October to the high of the past week. Live cattle futures rose as much as nearly one percent.
Compared with previous similar procurement, under the Obama is a "big orders". However, seems the local people in the drought, so the drop in the bucket move does not solve the big problem.
Iowa, an economic expert on Meyer said that Obama plans to buy about 100 million pounds of meat, but only in the past week, the U.S. production of pig, chicken, beef, close to 1.68 billion pounds.
In some ordinary people it seems, Obama need to do is to change its energy policy, in particular, to encourage corn-based ethanol policy. According to the current policy in the United States this year, 40% of the country's corn production, will be forced to be used to produce ethanol. The percentage is even more than feed corn.
The UN Food and Agriculture Organization recently publicly called for the adjustment of U.S. corn for fuel "policy, which can be described as" fueling "the current price of corn rose.
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