Corn farmers are enjoying a record crop output this year.
"It's a substantial increase. In fact, in the 22 years that I've been working here, we've never seen an increase like that in one year. It's all price response," said Steve Amosson, an Agriculture Economist. Amosson says farmers should expect to harvest a 13 billion bushel crop this year. That's an increase of about 14 million acres harvested. But consumers should not expect the increase in crop output to lower their corn flakes prices.
"You know we have three to four billion bushels going toward ethanol and then the rest goes into your producing your Kellogg Corn Flakes, into pharmaceuticals, into feed for livestocks," said Amosson. Amosson says the growing demand for corn from the ethanol industry has pushed corn prices to more than $4.00 on the board. Amosson predicts that price should plateau now that farmers have the record output.