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Chinese government prepares for potential wheat loss

The Chinese government detailed plans for farm subsidies to encourage grain production Wednesday due to the current drought. Earlier this week, the Chinese State Council established a ten point plan which includes a pledge to financially help farmers plant wheat and corn, treat diseases, irrigate wheat and create a fund of $180 million to purchase equipment and $1 million dollars for drought relief across the country. According to the Wall Street Journal, the drought in China could cause a weak wheat crop creating a global food inflation scare.  

The Ministry of Agriculture recently released a report stating around two-thirds of crop land for winter wheat is affected by the drought. If the drought causes the grain to perish the world could see a larger increase in food prices.