Storms Hurt Corn Crop

11 06 2008

Surprise!  Another hit to the corn supply means higher prices at the grocery store for us.  Last week’s storms have flooded fields in Iowa, Illinois, and Indiana where a big chunk of the nation’s corn is grown.

“The crop is in serious trouble,” said Jim Stephens, president of Farmers National Commodities Inc. in Omaha, Nebraska, who helps manage more than 3,600 farms across the Midwest. He said corn will top $8 a bushel this year.

The weather is endangering a U.S. crop already expected by the USDA to decline from last year’s record harvest after farmers planted 8.1 percent fewer acres. Global inventories may fall to the lowest levels in 24 years by Aug. 31, the USDA said. Read the rest of this entry »





Food Prices Still Rising

5 05 2008

ugh….this article was in the Lansing State Journal today.

Americans might be getting another helping of food inflation, and it seems likely to come from higher prices for chicken and pork.

Overall food inflation could double this year, lifted by the rising costs of fuel, corn and soybeans, some analysts predict.

Food inflation hit 4 percent last year, up from 2.4 percent in 2006. While beef prices were already high, chicken and pork prices didn’t reflect record costs for feed and fuel. That’s poised to change as chicken and pig producers who have been losing money slaughter more animals to decrease the supply and raise the prices they can charge.

UGH!  Again, this is pretty much do to the Ethanol myth.  Guess what?!  ETHANOL IS NOT A VIABLE ENERGY SOURCE!  All these E-85 vehicles have been a huge waste of money.  A 2006 University of Minnesota Study concluded that even if we used every available piece of farm land to produce ethanol for fuel it would only meet 12% of energy demand.  12%!!!  Does that sound like a good investment to you? 

My dad owns farmland in Illinois.  He made a lot more money last year off his crops than in year’s past so it’s hard for me to be critical of a cash cow for my family, but this is ridiculous.  Everyday we’re seeing higher food prices because politicians and the media are telling America that ethanol is the solution to ween us of Middle Eastern oil.  I don’t have a good solution to higher gas prices, but I know ethanol is NOT what we need.  Gas prices are high enough, we don’t need food prices getting higher because of an idea that is nothing more than a fad.