Flood damage will ripple through economy

IOWA CITY, Iowa, July 3 (UPI) -- Flood damage in the Midwest, estimated at $8 billion, will likely ripple through the U.S. economy and food-supply, economists said.

The American Farm Bureau Federation estimated 5 million acres of crops have been destroyed due to recent flooding.

Homes, farm equipment and grain storage has been destroyed. But, the "ripple effect goes from the agricultural and food-supply chain all the way to the retail consumer, where it'll hit Joe Smith's wallet," economist Jordan Rizzuto of the Storm Exchange told USA Today.

Experts said stalled grain headed to market and petrochemicals headed to factories in the Midwest will result in $50 million losses in shipping alone.

Prices for producers and consumers will likely rise and corporate earnings could fall. Standard & Poor's recently downgraded credit ratings for Tyson Foods, Pilgrim's Pride and Dean Foods, the newspaper said.

Agriculture will take the hardest hit on the flood, the newspaper said.

President of the Iowa Farm Bureau Federation Craig Lang estimated 90,000 Iowa farmers were affected by the flood.

"This 500-year flood moved across almost the entire eastern part of the state," he said. "It's going to take a long time to rebuild farms and communities."