Food Prices to Stay High

  • Corn production in Colorado. (Photo by Scott Bauer, courtesy of the USDA Agricultural Research Service)

Food prices are expected to keep rising in the
coming year. That’s at least partly because farmers plan
to plant less corn. Dustin Dwyer reports:

Transcript

Food prices are expected to keep rising in the
coming year. That’s at least partly because farmers plan
to plant less corn. Dustin Dwyer reports:

Jim Hilker is an agricultural economist at Michigan State University. He says the
demand for corn is high right now.

“Ethanol’s probably the biggest driver of it, but there’s also been very strong corn
exports.”

Hilker says those exports are going to countries where the wheat crop has
come in lower than expected.

But with all the demand for corn, the U.S. Department of Agriculture says
farmers across the country are planning to plant about 8% less
corn this year, compared to last year. Last year farmers did plant more corn
than they had in more than 50 years. This year, corn production should still
be high, but it might not keep pace with demand.

Hilker says that could mean higher prices for food.

But he says there are a lot of other factors to consider when it comes to
food prices. He says gas is a big one, since food has to be transported.

For The Environment Report, I’m Dustin Dwyer.

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