Photo Credit: http://www.thefiscaltimes.com/Articles/2012/08/19/Rains-Too-Late-to-Revive-Drought-Stricken-Crops.aspx#page1
By now, you’ve probably heard of the historic drought affecting half of the country. I was interested in learning what exactly this means not only for farmers, but also for consumers. 88% of corn crops have suffered as a result of this drought. Other crops, including soy, have also been destroyed due to the extreme heat and lack of rain. Corn and soy products are in virtually every processed food in America. In addition, corn is used to feed livestock.
Corn shortage + demand for food = higher food prices.
Most of the articles I read claim that there will be an increase in the price of beef, poultry, dairy, and processed foods (and there are a lot of processed foods). Today, it seems to be a waiting game to see how much it will rain and how much of these crops can be saved. The long term impact is still unpredictable, but it’s certain that we’ll see some prices increase in the grocery aisle within the year. Here are some articles on the drought and rising food prices: