For growers, the damage could force life-changing decisions. Florida growers are already grappling with a devastating disease called citrus greening that damages fruit and eventually kills trees. A destructive hit from Ian could be the final straw for some growers, said Raymond Royce, executive director at Highlands County Citrus Growers Association in Sebring, Florida.
Then there’s the impact on fertilizer. Fertilizer maker Mosaic Co. evacuated some of its Florida operations as Hurricane Ian neared landfall — yet another threat of food inflation.
Risk Of Chemical Spills And Dead Fish
Florida produces much of the US’s phosphate fertilizer, in a process that yields a radioactive and toxic byproduct called phosphogypsum, which is stored in stacks — or big mounds. Last year, one of them suffered a catastrophic failure due to heavy rain, causing a red tide that killed about 1,800 pounds (816 kilograms) of sea life and forced evacuations in nearby towns. Environmental experts fear a potential repeat with Ian, whose path may approach where Mosaic has the bulk of its phosphate facilities. A spokesperson for the company said it has made improvements to its facilities to help prevent any such issues, including “a more comprehensive internal dike system.”
Good Luck Getting Insurance
Florida’s insurance market was already chaotic before Ian. But the storm arrives in the wake of six insolvencies among insurers that write homeowner policies in the state. The largest insurers had pulled back from the market after previous natural disasters, while smaller firms still active there have struggled to endure losses.
Flood damages aren’t generally covered in home policies. Instead, they fall under policies managed by the US Federal Emergency Management Agency.
“If this is a major flood event, that could leave many homeowners vulnerable,” said Mark Friedlander, a spokesman for the Insurance Information Institute. “If there were major windstorm losses, other companies could be pushed in the direction of potential insolvency as well.”
--With assistance from Brian K Sullivan, Will Wade, Mark Chediak, Chunzi Xu, Tatiana Freitas, Jen Skerritt, Linda Poon, Kriston Capps, Max Reyes and Martine Paris.
This article was provided by Bloomberg News.