This punishing Midwest drought may lead to food inflation as the cost of corn soars for both consumers and farmers trying to feed their animals. Scott County farmers say the prices will impact dairy and cattle farmers first.
Big users of grain, namely farmers who depend on corn to feed their livestock will be taking the first hit. That's because the condition of corn in the 18 states that produce most of it has deteriorated due to a wide spread drought.
The latest report from the US Department of Agriculture says 30 percent of the crop is now considered in poor or very poor condition. Just one week ago it was at 22 percent. Compared to other states Iowa is actually doing better though, in Indiana 61 percent of their corn is at poor or very poor conditions.
This drought is not only just affecting the crop, it's affecting consumers and that doesn't mean just you and me.
"Prices are going to go up, it's going to affect the livestock person the most. the live stock grower, the hog operations use a lot of corn, the poultry they are heavily impacted, I mean there is no substitute for corn when you're feeding poultry, so they're going to suffer," Scott County farmer, Robb Ewoldt tells TV6.
Tuesday, corn prices surged 31 cents to $7.74 in afternoon trading.
Corn and Soybean farmers in Scott County say they're starting to feel the effects of last week's heat, but say they are still much better off than other states in the Midwest. They tell us if they can get some rain and continue to have corn in "good" condition, they may profit off of the rest of the Midwest's misfortune.
"Our corn does not look as bad as other areas of Iowa and other area's East of here, so if we can grow it, it looks to be a very profitable year because of everybody else's misfortune, it's just the way you look at it," Ewoldt tells TV6.
Consumers will likely see increases at the grocery store too. Prices for cereal, sweeteners, animal feed, and all corn products should be increasing.
