Food Inflation?


McClatchy talks about it here.  The corn in the picture is suffering spotty emergence as not too many plants in the foreground sprouted and emerged after being planted.  And by the shape of the leaves the plants are being stressed by lack of water.  What cannot be seen is the effects of drought and heat have on the pollination of the ears of corn.  That can only be seen after the corn is mature when you shuck an ear and only one third of the kernels have filled out.

Now, you know where this corn is going to go if it matures?   They are not going on your table as corn to eat with your potatoes and meat loaf.  This corn is going to fatten hogs or steers or maybe go to dairy cattle to make milk.

But first, it is going to go up in price.  This past spring, corn was going for $6.50/bushel.  Today the price for corn for delivery in December, after this year’s harvest, is $7.2175  /bu.

The price of pork and beef is heading up.  Put some in the freezer.

As an aside, and to give you a little perspective, some farmers are getting 300 bu/acre.  Granted, corn is an expensive crop to grow, a lot of expensive inputs, but 2000 acre farms are not considered big anymore and I know two farming operations, in western Ohio,  that farm over 3,000 acres.  I do not have clue how big the farms are in Iowa where they really grow corn.

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