As Mike Lutmer examines ears of soon-to-be-harvested corn on his farm in south-west Ohio, his face turns increasingly grim.
“They are very light. They should be much wider and longer,” says Mr Lutmer, who, along with his brother, farms about 1,500 acres of soybeans, corn and hay in the rolling hills of picturesque Warren County.
The kernels on one ear of corn he holds are anything but the uniform size and shape he normally expects to see.
“It was just too dry.”
Large parts of Ohio, an important crop-producing state, have seen little substantial rainfall since July, with parts of the state experiencing “moderate drought conditions”, according to the National Integrated Drought Information System.
With food and animal feed grown by Mr Lutmer and others like him ultimately destined for export to places such as Saudi Arabia and other Gulf nations, the drought currently hitting America's breadbasket could have global consequences.
Heavy rains in late spring this year, followed by an extended dry period that stretched through the summer to early winter, have put pay to any hopes of high harvest yields for Mr Lutmer.
“We like to have a minimum of 150 to 200 bushels of corn per acre,” he says. “If we average a little over 100 this year, we’ll probably be lucky.”
And the situation in Ohio is just the tip of the iceberg.
Politico quoted analysts as saying 80 per cent of the contiguous US is currently either in a drought or facing “unusually dry conditions”.
This is the most widespread dry spell since the National Oceanic and Atmospheric Administration began tracking drought 20 years ago.
The western US, reports suggest, is now the driest it’s been for 1,200 years.
And that has had a significant knock-on effect on food yields, not only in the US, but in the Middle East and other regions as well.
On average, the US grows about 90 million acres of corn – an area larger than Germany – every year. The USDA reports that corn yields this year in Texas, Oklahoma and Kentucky are down 27, 19 and 20 per cent, respectively, compared to 2021.
But Kansas, which borders Oklahoma, is perhaps the state worst affected by drought this year.
Record-breaking dry conditions have parched the central US state where one quarter of all US winter wheat - a crop used for producing bread and other essential foodstuffs, and which is particular important in developing countries - is harvested.
Drought in Kenya affects wildlife - in pictures
Half of Kansas’s wheat supplies are exported.
Kansas neighbour Nebraska ranks third and fourth in corn and soybean production, respectively – the two biggest agricultural food exports to Saudi Arabia, which buys more than $1 billion in US agricultural products every year. Half the state is facing either “severe” or “extreme” drought conditions.
Last year, nearly $200 million worth of Nebraska soybeans – used to feed animals and make cooking oils – were exported to Egypt, the Midwestern state’s third-biggest importer of the crop behind China and Mexico.
About $24 million worth of Nebraska corn was exported to Saudi Arabia, and $16 million exported to Egypt and Morocco, respectively.
It’s not just grain and bean markets that have been affected.
Saudi Arabia and other Gulf states are home to huge dairy operations that supply milk and other dairy products to countries across the Middle East and North Africa. Many of those farms rely on large volumes of hay and other animal feed from the US.
In 2019, Saudi Arabia and the UAE imported more than 750,000 metric tonnes of American alfalfa and hay. Combined, that accounted for about 20 per cent of all US exports of those products.
This year, from the months of January to August, that figure had fallen to 5 per cent, according to the Gombos Company, a California-based forage exporter.
“GCC countries face a shortage of hay and forage not only this year, but also into the future,” says Shohei Takimoto, analyst at the Japanese company Mitsui, a major trader of international grain.
A river runs dry: drought on the Colorado - video
This year, demand for forage in the US has ramped up due to poor yields fuelled by a brutal drought in Texas, the country’s largest hay producer, last summer.
And reports suggest dry conditions in the Midwest are set to continue for the coming months, in large part due to the La Nina climate event, with the 2022-23 crop of wheat estimated to be among the lowest in the past 20 years.
This could lead to shortages in countries such as Yemen, the tenth-largest importer of US wheat and a country in the midst of a civil war.
“We are seeing some of the worst drought conditions,” says Dennis Todey of the Midwest Climate Hub, an agency of the US Department of Agriculture.
Mr Todey compared the current situation to the 1930s Dust Bowl phenomenon, when severe dust storms greatly damaged agriculture in the American prairies, destroying the lives and livelihoods of millions.
“If you look at the 1930s drought, we are probably similar to a couple of those years, though we are not to the length of those droughts.”
He says that what has made this year particularly bad for crop farming is that most of the Plains and the Midwest regions have faced some degree of drought throughout most of this year.
Revealed by drought - in pictures
Back in Ohio, Mike Lutmer says he has felt those effects. He typically harvests about 500 acres of high-quality hay each year, much of which is bought by local famers right out of the field.
This year has been a little different.
“We’ve actually shipped hundreds of tonnes of hay out to Texas and Oklahoma,” he says. “I’ve got some friends out there - it’s really bad right now.”
Although corn and soybean yields in many traditionally high-producing states are way down this year, that has partly been offset by higher yield returns in other states.
And while the drought’s effects on many agricultural regions continues to be a concern, experts say that, in the short term, China’s grappling with its Covid-19 response is currently of greater concern to international markets than any fallout from the US drought.
Still, the ongoing lack of rain in the US heartland, combined with drought in Argentina – the second-largest wheat producer in the southern hemisphere – and the war in Ukraine, another major global grain producer, means that the outlook for next year is far from ideal.
“Now the issue becomes how much rainfall do we get ahead of production next year,” says Todey.
“We have some very dry soils and winter wheat conditions are very poor going into the winter.”
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Global state-owned investor ranking by size
1.
|
United States
|
2.
|
China
|
3.
|
UAE
|
4.
|
Japan
|
5
|
Norway
|
6.
|
Canada
|
7.
|
Singapore
|
8.
|
Australia
|
9.
|
Saudi Arabia
|
10.
|
South Korea
|
UAE currency: the story behind the money in your pockets
RESULTS
Argentina 4 Haiti 0
Peru 2 Scotland 0
Panama 0 Northern Ireland 0
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
START-UPS%20IN%20BATCH%204%20OF%20SANABIL%20500'S%20ACCELERATOR%20PROGRAMME
%3Cp%3E%3Cstrong%3ESaudi%20Arabia%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EJoy%3A%3C%2Fstrong%3E%20Delivers%20car%20services%20with%20affordable%20prices%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EKaraz%3A%3C%2Fstrong%3E%20Helps%20diabetics%20with%20gamification%2C%20IoT%20and%20real-time%20data%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMedicarri%3A%3C%2Fstrong%3E%20Medical%20marketplace%20that%20connects%20clinics%20with%20suppliers%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMod5r%3C%2Fstrong%3E%3A%20Makes%20automated%20and%20recurring%20investments%20to%20grow%20wealth%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStuck%3A%3C%2Fstrong%3E%20Live%2C%20on-demand%20language%20support%20to%20boost%20writing%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EWalzay%3A%3C%2Fstrong%3E%20Helps%20in%20recruitment%20while%20reducing%20hiring%20time%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EUAE%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEighty6%3A%20%3C%2Fstrong%3EMarketplace%20for%20restaurant%20and%20supplier%20procurements%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFarmUnboxed%3A%20%3C%2Fstrong%3EHelps%20digitise%20international%20food%20supply%20chain%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ENutriCal%3A%3C%2Fstrong%3E%20Helps%20F%26amp%3BB%20businesses%20and%20governments%20with%20nutritional%20analysis%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EWellxai%3A%3C%2Fstrong%3E%20Provides%20insurance%20that%20enables%20and%20rewards%20user%20habits%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEgypt%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAmwal%3A%3C%2Fstrong%3E%20A%20Shariah-compliant%20crowd-lending%20platform%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDeben%3A%3C%2Fstrong%3E%20Helps%20CFOs%20manage%20cash%20efficiently%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEgab%3A%3C%2Fstrong%3E%20Connects%20media%20outlets%20to%20journalists%20in%20hard-to-reach%20areas%20for%20exclusives%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ENeqabty%3A%3C%2Fstrong%3E%20Digitises%20financial%20and%20medical%20services%20of%20labour%20unions%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EOman%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMonak%3A%3C%2Fstrong%3E%20Provides%20financial%20inclusion%20and%20life%20services%20to%20migrants%3C%2Fp%3E%0A
BUNDESLIGA FIXTURES
Friday Stuttgart v Cologne (Kick-off 10.30pm UAE)
Saturday RB Leipzig v Hertha Berlin (5.30pm)
Mainz v Borussia Monchengladbach (5.30pm)
Bayern Munich v Eintracht Frankfurt (5.30pm)
Union Berlin v SC Freiburg (5.30pm)
Borussia Dortmund v Schalke (5.30pm)
Sunday Wolfsburg v Arminia (6.30pm)
Werder Bremen v Hoffenheim (9pm)
Bayer Leverkusen v Augsburg (11.30pm)
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Background: Chemical Weapons
Killing of Qassem Suleimani
The five pillars of Islam
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
MATCH INFO
Scotland 59 (Tries: Hastings (2), G Horne (3), Turner, Seymour, Barclay, Kinghorn, McInally; Cons: Hastings 8)
Russia 0
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO
Rugby World Cup (all times UAE)
Final: England v South Africa, Saturday, 1pm
UAE currency: the story behind the money in your pockets
THE SPECS
Engine: 3.5-litre V6
Transmission: six-speed manual
Power: 325bhp
Torque: 370Nm
Speed: 0-100km/h 3.9 seconds
Price: Dh230,000
On sale: now
Graduated from the American University of Sharjah
She is the eldest of three brothers and two sisters
Has helped solve 15 cases of electric shocks
Enjoys travelling, reading and horse riding