- Many corn growers are sitting out the higher prices this year because they agreed to sell their crops months ago when prices were lower.
From the Sacramento Bee:
The nation's worst drought in nearly a half-century has sent corn prices soaring, a potential boon for Central Valley farmers who grow the crop in irrigated fields and don't depend on the rain.
In reality, however, many area corn growers are sitting out the higher prices this year because they agreed to sell their crops months ago when prices were lower.
California consumers will likely pay for the drought, even though they're located far away from the withered fields of the Great Plains and Midwest.
A U.S. government report issued last month predicted chicken and turkey prices, for instance, would rise between 3.5 percent and 4.5 percent later this year. Milk and beef prices are expected to climb as well. That's because corn and soybeans are key ingredients in animal feed.
This year was supposed to be the biggest one for corn since 1937, with about 95.9 million acres planted across the country. Much of that corn was to become feed for livestock and poultry.