Drought is likely to drive up prices, send corn forecast to 17-year low

  • Article by: JIM SPENCER , Star Tribune
  • Updated: August 11, 2012 - 11:15 AM

USDA projects corn yields at a 17-year low; Minnesota has escaped the worst.

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dirtharryAug. 10, 12 9:38 PM

Who needs corn anyway except the ethanol industry.

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steavis61067Aug. 10, 1210:40 PM

@dirtharry - You bring up a good point, but now the Feds require their vehicles to use it, per the Energy Policy Act. If there wasn't demand, it wouldn't be used. And corn is the only grain grown in all 50 states. I'd say the farmers need it.

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neilgdAug. 10, 1210:52 PM

This article paints a very misleading picture of Minnesota crop conditions. By stating that the average corn yield is only down one bushel from last year, it makes it sound as though we are unaffected by the drought. While eastern Minnesota has received more than adequate rainfall, one need only to take a drive to SW Minnesota to realize that's only part of the story. Thousands of Minnesota farmers will NOT have much of a harvest this year. 28 counties remain in a moderate to severe drought. Where I live in western MN we recieved just a half inch of rain for the entire month of July. Our crops, which one looked so good, dry up a little more each day. $8 corn doesn't mean much if you don't have any to sell.

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norselandcAug. 11, 12 6:42 AM

Corn and corn derivatives are in 25% of all the items in the grocery store, but especially in the meats, which are mostly from corn-fed animals, and sweeteners, which are mostly high fructose corn syrup in this country.

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joe_mnAug. 11, 12 9:19 AM

MN corn forecast is up 6%. But our corn price is up too. Is that like Cali refinery fire causes our gas price to rise while oil price is declining? Who is making money here?

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ekholmAug. 11, 1211:18 AM

I think its time to increase the ethanol mandate; as currently only 5 billion of bushels of corn is used for ethanol (doubled since 2007). It should be noted that the price of corn has also doubled since 2007. We should be doing everything we can to further increase the demand for corn; as people in the ethanol industry think; the price is not high enough yet.

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fromupnortAug. 11, 1211:33 AM

Is this really a national crisis? Yes, its devasting for the new farmer(are there any)who needs the crop to make his mortgage payments. But, I understand that more corn acreage was planted this year to capture the USDA subsidies on land that is marginal. Also, I hear that established farmers have the equivalent of a year's crop on inventory (in their bins). And as always in the past, the food processors will run up the price of consumer food based on the "drought." We live in a global community. We are only a half a year away from South American corn and beans. No one should panic. Next year is a new year and it might be Minnesota who gets hit with the dry conditions.

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truthtopowerAug. 11, 1211:56 AM

norselandc, I can do without all the processed foods that have corn as a filler or a sweetener. As far as the animal feed goes, again, corn is a lousy feed substitute. The silver lining is that less corn means less of what passes for food in the uS. Americans could stand to east less, high prices are going to help achieve that. Am I upset about our grocery bills, you bet! But I have zero control over food prices or inflation except to eat less. Every single adult I work with is overweight and I am about 10-15lbs. overweight myself. We'll all be fine with less to eat.

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vortex100Aug. 11, 12 3:52 PM

My father-in-law has a farm, and he is one of the lucky ones in Minnesota with a great crop this year with adequate moisture and warm temperatures. He will be actually making quite a bit of money this year, which is not the case for way too many farmers out there. It is hard to believe that Congress actually left for their August vacations without passing a drought relief bills for these farmers. What a bunch of lazy jerks.

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