Drought having major impact on Midwest economy
OMAHA, Neb. (AP) _ The ongoing drought _ combined with the global economic turmoil _ is hurting business in nine Midwest and Plains states and increasing worries about the possibility of another recession.
A report released Wednesday says July's Mid-America Business Conditions Index plunged below growth neutral for the first time since 2008. The index hit 48.7, compared with 57.2 in June.
With 80-to-90% of the counties in the Mid-America region being listed as in drought conditions, Creighton University economist Ernie Goss says while crop insurance and other disaster programs are easing the pain for farmers and ranchers a bit, the rest of their local economy is being hit hard.
Goss says he has been surprised how fast the drought impacted the economies in rural areas.
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