Now remember, many of our foods are dependent on corn. The bulk of corn grown in the U.S. is consumed by livestock, poultry, and fish production. Approximately 12% of the U.S. corn crop ends up in foods that are either consumed directly or indirectly, and has many industrial uses including ethanol. So this is not good news at all – and will most likely translate into much higher food costs.
Good thing the administration has taken such bold moves to prevent further global warming, huh?
CHICAGO, July 17 (Reuters) – U.S. corn production has shrunk 7 percent versus the government’s downgraded estimate a week ago, a Reuters poll found on Tuesday, with a worsening drought likely to cause more damage before the month is out.
As the worst drought since 1956 begins to expand to the northern and western Midwest, areas that had previously been spared, analysts are slashing corn yield estimates by the hour. Some analysts are also starting to cut their forecasts on the number of acres that will be harvested as farmers opt to plough under their fields to claim insurance.
What began the season as a potentially record corn crop as farmers planted the biggest area since 1937, may now be the smallest in at least five years. Soybeans, which enter their key pod-setting phase later then corn, are increasingly at risk. The poll of 13 analysts pegged the average estimated corn yield at 137.2 bushels per acre, down 6 percent from USDA’s current forecast of 146 bushels.
The USDA dropped its yield estimate by an unprecedented 20 bushels per acre in its report on July 11. Corn production was pegged at 12.077 billion bushels, the smallest in 5 years, down 6.9 percent from USDA’s outlook. “We’re losing more yield with the additional stress now in the northern areas which up until now had been pretty good,” said Shawn McCambridge, analyst for Jefferies Bache.
Actually, this may be an unexpected benefit of the unfortunate drought. Getting overuse of corn products OUT of our food chain would be a very healthy development. Let’s stop subsidizing the corporate corn industry. For more information, please see this excellent documentary on the subject, King Corn.
http://www.imdb.com/title/tt1112115/
It isn’t just corn Liz – all over the world food production is under stress due to droughts, flooding and storms so that wheat, rice and other grains are affected. We’re going to have rising prices in the fall as a result and with wages remaining stagnant and hiring at a standstill people will become ever more desperate. Watch for more madness and violence (the typical human responses) as the collapse of civilization begins to accelerate in the coming months. Wait til water becomes scarce!
http://guymcpherson.com/2012/07/global-madness/
I’d expect meat prices to drop for a while, as producers rid themselves of stock as feed prices go up, after which a big increase.
If you’re not a vegetarian, time to stock the freezer. If you are a vegetarian, time to stock the pantry even more urgently.