On June 14 corn prices closed at $7.55 a bushel. That's double the price at this same time last year. Ordinarily this would be great news for America's farmers, but Midwest flooding is expected to cause severe corn shortages.
The U.S. Department of Agriculture estimates 90 million acres of crops were scheduled for planting this year, which is 1.5 million acres less than expected. Did a rainy Spring planting season and talk of the planned flooding by the U.S. Army Corps of Engineers keep farmers out of their fields?
A lack of corn will be felt far beyond the dinner table. Corn is a key ingredient in ethanol gasoline, feeds America's livestock and is found in many food products including soft drinks and cereal. Prices will undoubtedly increase steadily at the grocery store, gas pump and butcher shop throughout the summer as Midwest flooding continues along the Missouri River basin. Not only are farmers losing their homes, land and fields -- ultimately their bank accounts will also suffer this season.
The United States produces the most corn of any country, according to an Associated Press news report. With Midwest flooding in Iowa, South Dakota, Missouri, Montana, Wyoming and Nebraska, acres of crops planted along the Missouri River and its tributaries will get devastated by flood waters.