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Drought conditions in Lowa resulted in reduced corn output levels, posing significant threats to related activities that use corn in one way or another. The article outlines that due to declined corn harvests as a result of drought, corn prices went up. This scenario pushed up commodity prices of related products, especially processed corn products or complements to corn products (Dvorchak, 2012). Corn producers and corn product manufacturers were faced with critical decisions to make in relation to the appropriate course of action to be taken. While these scenarios were taking place in Lowa, their impacts were bound to be experienced across the entire economy.
The first category in this line is the farmers. While their output was low, market prices were going up. The implication of this was that supplies that they demanded became relatively expensive, especially those that were manufactured using corn; like livestock feed. Consequently, the farmers needed to reduce their livestock herds. To do so, they sold their livestock for slaughter. This increases livestock supply for slaughter purposes, triggering a fall in animal protein products in the meat markets. However, prices of processed corn products were going up, responding to low corn supply in the market.
Amid the events that had occurred in Lowa, insurance claims were bound to increase. This is more so with the farmers, where their produce is insured against loss. The primary role of insurance companies is to reduce risks by designing measures and policies to mitigate risks at a premium that is charged to clients (intext). Insurance and reinsurance activities heightened, with beneficiaries filing claims accordingly relative to the underlying uncertainties in Lowa and in the national economy at large.
Production of ethanol utilizes a significant percentage of national total corn output. The drought conditions in Lowa implied that the supply of corn would be inconsistent as demand rises. This
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However, with withdrawal of subsidy in 2016, firms getting subsidy lost some of the incentive that is bound to affect their profitability. Since demand for gasoline is always going to be there and is ever increasing with no substitute product available, as such there shouldn’t be any external business threat to firms producing ethanol.
These two phenomena are described in the following paragraphs: i) When alternative metals are found in place of Platinum and Palladium, then consumption demand for these metals decrease in the industry (Adil, 2006). Platinum and Palladium are no longer used as metals for catalyst converters in cars manufactured by Mazda.
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In the two other applications, all crops seemed to somewhat continue to thrive in the low infestation while enduring larger losses during high infestations. However, all the corn varieties were not equally effective at controlling the infestations. The Super H (Non-BT) crop had approximately a 4% drop during the low infestation in comparison to the no ECB interval, and an arresting 22% drop during the high infestation versus no ECB.
The world is gravitating towards the accomplishments of the set goals for establishing a green world”. U.S President George W Bush has maintained the emphasis on corn-based ethanol production in the core of his energy policy.
Generally, the demand of an inferior good falls with increase in disposable income of an individual. They are good which people turn to in order to spend less during harsh economic times. Inferior goods have negative
With increasing environmental concern and sustainable development, the development of fuels with capability of the reducing greenhouse gas emissions with added advantage of being renewable is gaining favor (Larsen & Sønderberg 2007). Bioethanol is believed to have such
The effect has caused too many fans opting to view the sports at the comfort of their homes which tend to be cheaper as well as comfortable.
A sport such as baseball, according to the Washington Times report indicates that, its
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