World Wheat Crisis Looms

During this month the price of wheat climbed to $7 per bushel, the highest price ever paid here in the United States for wheat.

From all reports, there is a wheat crisis throughout the world. Where once over 2 billion bushels were held in reserve, now less than 300 million bushels remain at this time. According to all reports, the United States will run out of wheat this summer before the harvest. Besides this, prospects for the harvest this fall are not very encouraging because various regions in wheat growing areas are drought stricken at the present time.

A recent news report seen by the editor showed farmers pulling up clumps of wheat and the dry, dusty' ground just fell away from the roots because there was no depth of moisture. Some farmers have already

disced down their wheat crop in order to plant soybeans or some other crop to try and salvage the season. You must remember that even last year there was a Midwestern drought and a reduced harvest in many places.

... prices have gone up astronomically today. Wait until the new round of prices strike! It was also reported that in some wheat growing areas, serious fungus may destroy the entire crop.

Corn in Short Supply

To compound these problems, it was reported that the United States would run out of corn by September 1. Some reports now state that the date will be sometime in July. The 1996 corn harvest will not come in until the end of September. Therefore, some of the big grain trading companies have already entered into contracts to import corn. This will be the first time in history that the United States has ever imported feed grains! In addition, oats has also escalated in price so that feed costs for livestock will be extremely high. People should realize that at the present time, meat prices are low because farmers are severely culling their herds to hold down on feed costs. Soon meat will be in short supply and very high in price.

Fuel Costs Escalate

At the present time, fuel costs have also risen sharply. The world fuel markets had expected to find the Iraq oil market opened up and oil prices would be kept down. However, gasoline prices have risen more than 20 cents per gallon and now stand at the highest price since the 1974 Arab oil embargo following the 1973 Yom Kippur War in the Middle East. Outlets in some localities are charging $2 a gallon for gasoline and some analysts believe that this price will prevail throughout the United States before the summer is over. For years fuel prices in foreign countries have been very high. Here in the United States we have enjoyed low fuel prices, however, that will change now. Recently many people have put their money into expensive new cars. They intend to drive those automobiles that will require more outlay for expenses. These inflation factors will certainly depress the economy when they develop.

.. The Foreign Affairs publication of March-April, 1996, contained an article titled "Asia's Empty Tank." Kent E. Calder, the author, wrote the following "Continued reliance on oil means a tightening embrace of necessity between East Asia and the Middle East that, over the next generation, could FUNDAMENTALLY challenge the prevailing Western-dominated global order."

The article goes on to say that between 1993 and 1996, China has begun importing 600,000 barrels of oil per day. This will mean that China will have to secure supplies in the Middle East and the author stated, "Recent estimates from the AsiaPacific Economic Cooperation (APEC) organization suggest that China's net external requirements will rise from some 600,000 barrels per day to over 1 million by 2000 [C.E.] and nearly 3 million by 2010. That huge total-nearly half of Saudi Arabia's current production- would represent almost 20 percent of Asia's oil imports. By 2015, less than two decades hence, Shell China Petroleum Development estimates, Chinese imports of more than 7 million barrels per day will approach the current imports of the United States."

Famine Stalks The World- Article From The Sacred Name Broadcaster 5/96

"Higher oil prices have put the financial squeeze on many farmers and on industries that are farm related. Now we are informed that an agreement has been negotiated to allow Iranian oil to reach the market and perhaps international oil prices will soon be reduced.

The news media reports that many of the 1996 wheat growing areas in the west have been devastated by a drought and the wheat harvest according to various reports will be the lowest in the past 20 years. We must remember that population continues to increase and requires more food. When the editor travelled in the Philippines last winter a terrible typhoon had devastated vast areas of rice growing land in the south of that nation. President Fidel Ramos had informed the nation that he would be importing rice to make up any deficit. But there is also an indication that Asia is short of rice, as for example, North Korea which has imported rice this year.

Recently an article was published in which it was shown that a real possibility exists for another monumental potato famine to strike.

The nation of Ireland was hit by a potato famine in 1845. By 1847, more than half the population of Ireland had either died or immigrated. The cause was a blight that struck the potato crop in that year, but there had been various crop failures in 1817, 1821, 1825, 1829, and through the 1830s.

Now we have learned that a possibility exists for a blight to heavily affect the potato crop here in the United States. In Pennsylvania, for example, in 1990 the late-blight fungus destroyed more than 500 acres of potato crop in Potter County. Commercial potato growers are concerned that the possibility might exist for another failure of the potato crop. The potato growers are asking Congress to allocate $35 million for research into the late-blight fungus, so preventative measures can be taken if necessary."