Drought in Midwest Raising US Food Prices
A drought in the northern portion of the breadbasket states has caused an increase in corn prices over the past month, and prices could continue to grow reports The Washington Post.
In the past month alone, corn prices have increased almost 27 percent according to the United States Department of Agriculture’s U.S. Export Sales Report. In the coming weeks, corn will be in the midst of pollination and the impact of bad weather could be detrimental for the cash crop.
"You only get one chance to pollinate over a 1 quadrillion kernels," said Bill Lapp, president of Advanced Economic Solutions, an Omaha-based commodity consulting firm in an interview with The Washington Post. "There’s always some level of angst at this time of year, but it’s significantly greater now and with good reason. We’ve had extended periods of drought."
Corn is the predominant cash crop in the country according to the USDA’s Economic Research Service and any damage to the crop could negatively impact the nation's food prices if damaged. Since corn products are used in feed, this would impact the cost of beef as well.
Sean Flynn is a Junior Writer for The Daily Meal. Follow him on Twitter @BuffaloFlynn