Will Higher Corn Prices Affect Your Pocketbook? - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Will Higher Corn Prices Affect Your Pocketbook?

Dr. Steve Amosson, AgriLIFE Dr. Steve Amosson, AgriLIFE
Dee Vaughan, Texas Corn Producers Board Dee Vaughan, Texas Corn Producers Board

If you have noticed you are paying more at the grocery store for your corn flakes, be prepared to pay even more in the coming months.

The Department of Agriculture reports farmers are expected to plant less corn this year than last, driving up the cost of the crop even higher.

We reported last october corn harvesting was at a record high. But that is expected to turn around this year. The reason for that is the basic bottom line.

The price of soy beans is usually 2.3 times the price of corn. Dr. Steve Amosson of AgriLIFE says, "basically the soybeans ratio is up to 15 dollars, so it is more profitable to plant soybeans than corn."

Corn also requires a lot of fertilizer, and the cost of that has doubled this year, making soybeans ever the more attractive.

So what about our area? Amosson says, "it will stay pretty level, we won't see an increase in corn acreage because there is not a lot of rain, and it takes a lot of water to produce corn."

That will drive up prices, eventually trickling down to consumers. But the price of corn itself is not the main reason for those higher grocery bills.

Dee Vaughan of the Texas Corn Producers Board says, "the majority of the price of cornflakes is marketing, energy, it's beyond the price of the commodity."

Vaughan says even if the price of corn is doubled, that only adds a few cents to a product.

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