Smaller Corn Harvest Pushes Up Food Prices
A small corn harvest, weakened by the worst U.S. drought in at least half a century is leading to increases in food prices. Nationwide, the crop is expected to be 313 million tons, down 13 percent from last year.
Pork prices are on the rise - that includes ham, pork chops and bacon. Prices are expected to go up about 3 percent this year, and possibly another 3.5 percent next year, according to federal officials. The increase is directly related to higher corn prices, making it more expensive to feed pigs. Also, some farmers are getting out of the business, which will lead to a smaller supply.
Milk and Cheese
Dairy farmers are facing at least an 80 percent increase in the cost of feeding their cows in just the past year, and some of that cost will be passed on to consumers.
In Minnesota though, some good news. The drought hasn't been as bad and we're actually expecting a 7 percent increase in the corn harvest over last year.