62-year old farmer Martha Waema’s three-acre farm was submerged by weeks of rainfall in Machakos, Kenya, on May 8, 2024.Andrew Kasuku/The Associated Press
With dismay, Martha Waema and her husband surveyed their farm that was submerged by weeks of relentless rainfall across Kenya. Water levels would rise to shoulder height after only a night of heavy downpour.
The couple had expected a return of 200,000 shillings ($1,500) from their three acres after investing 80,000 shillings ($613) in maize, peas, cabbages, tomatoes and kale. But their hopes have been uprooted and destroyed.
“I have been farming for 38 years, but I have never encountered losses of this magnitude,” said the 62-year-old mother of 10.
Their financial security and optimism have been shaken by what Kenya’s government has called “a clear manifestation of the erratic weather patterns caused by climate change.”
The rains that started in mid-March have posed immediate dangers and left others to come. They have killed nearly 300 people, left dams at historically high levels and led the government to order residents to evacuate flood-prone areas — and bulldoze the homes of those who don’t.
Now a food security crisis lies ahead, along with even higher prices in a country whose president had sought to make agriculture an even greater engine of the economy.
Kenya’s government says the flooding has destroyed crops on more than 168,000 acres (67,987 hectares) of land, or less than 1% of Kenya’s agricultural land.
Crops on approximately 168,092 acres of land, including Martha Waema’s farm, have been destroyed, posing a threat to food security.Andrew Kasuku/The Associated Press
As farmers count their losses — a total yet unknown — the deluge has exposed what opposition politicians call Kenya’s ill preparedness for climate change and related disasters and the need for sustainable land management and better weather forecasting.
Waema now digs trenches in an effort to protect what’s left of the farm on a plain in the farthest outskirts of the capital, Nairobi, in Machakos County.
Not everyone is grieving, including farmers who prepared for climate shocks.
About 200 kilometers (125 miles) west of Waema’s farm, 65-year-old farmer James Tobiko Tipis and his 16-acre farm have escaped the flooding in Olokirikirai. He said he had been proactive in the area that’s prone to landslides by terracing crops.
“We used to lose topsoil and whatever we were planting,” he said.
Experts said more Kenyan farmers must protect their farms against soil erosion that likely will be worsened by further climate shocks.
Jane Kirui, an agricultural officer in Narok County, emphasized the importance of terracing and other measures such as cover crops that will allow water to be absorbed.
In Kenya’s rural areas, experts say efforts to conserve water resources remain inadequate despite the current plentiful rainfall.
At Jomo Kenyatta University of Agriculture and Technology, professor John Gathenya recommended practices such as diversifying crops and emphasizing the soil’s natural water retention capacity.
“The soil remains the biggest reservoir for water,” he said, asserting that using it wisely requires much less of an investment than large infrastructure projects such as dams. But soil needs to be protected with practices that include limiting the deforestation that has exposed parts of Kenyan land to severe runoff.
“We are opening land in new fragile environments where we need to be even more careful the way we farm,” Gathenya said. “In our pursuit for more and more food, we are pressing into the more fragile areas but not with the same intensity of soil conservation that we had 50 years back.”
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.
The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.
Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.
Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.
The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.
The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.
“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.
Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.
“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.
The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.
The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.
A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.
Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.
Its key lending rate currently stands at 4.25 per cent.
CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.
The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.
This report by The Canadian Press was first published Sept. 17, 2024.
FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.
Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.
The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.
Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.
Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.
Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.
Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.
This report by The Canadian Press was first published Sept. 16, 2024.
