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High Corn Prices Could Have Negative Impact

by 5m Editor
29 November 2006, at 11:13am

US - Craig Benjegerdes has been farming for around 15 years. And in that time, he's seen some rough years. "A lot of farmers are pretty giddy, we haven't seen $3.50 corn for years and years and years. So it's a big question whether to sell the corn now or let it ride, wait for higher prices."

But the catch for Craig is, he has 3,000 hogs inside his buildings. And as the cost of corn rises, so does the cost to feed his animals.

"The cost to produce a pig from ten pounds up to market has gone up $20 a pig, so we'd like to see that reflected in the retail price or the end price farmers get for the pigs but it hasn't been reflected yet."

And that has farmers like Craig pretty much breaking even. But Craig says the people who won't break even are the consumers, who could have to pay more for meat when all these prices catch up to the stores who sell it.

"You can look at next summer, fall or winter. I think that's when it will get to the retailing chain by then."

Source: KIMT

5m Editor