"Stubborn Drought Expected To Tax Mexico For Years"

"A severe drought in Mexico that has cost farmers more than a billion dollars in crop losses alone and set back the national cattle herd for years, is just a foretaste of the drier future facing Latin America's second largest economy."

"As water tankers race across northern Mexico to reach far-flung towns, and crops wither in the fields, the government has allotted 34 billion pesos ($2.65 billion) in emergency aid to confront the worst drought ever recorded in the country.

The water shortage wiped out millions of acres of farmland this winter, caused 15 billion pesos ($1.18 billion) in lost harvests, killed 60,000 head of cattle and weakened 2 million more livestock, pushing food prices higher in Mexico."

Mica Rosenberg and Noe Torres report for Reuters March 22, 2012.

Source: Reuters, 03/22/2012