Record Drought Won't Hurt Farm Profits

Record drought won't hurt farm profits

A tractor cuts down corn in a field designated as zero yield on a farm in Vigo County near Terre Haute, Ind.Photograph by Victor J. Blue/Bloomberg

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By Mark Drajem and Alan Bjerga

August 3, 2012 at 1:25 AM UTC

This article is for subscribers only.

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This article is part of the August 6, 2012 issue of businessweek.

Despite this year’s ruinous drought, many farmers will come out fine thanks to high prices and taxpayer-subsidized crop insurance. Record profits in 2011, another bad weather year, show how it works.

Record Drought Won't Hurt Farm Profits — Photograph by Sekhar Venkatapur/Getty Images