A Good Corn Crop, Despite Floods

Farmers recover from heavy rains that threatened to cause high food and ethanol prices.

Kevin Bullis 08/12/2008

2 Comments

Earlier this year, flooding in the Midwest kept farmers from planting their crops on time, which caused the United States Department of Agriculture (USDA) to predict lower yields, and had some experts worried that a bad season could lead to high food prices and threaten the ethanol industry.

But farmers seem to have recovered. The latest crop production statistics from the USDA, released this morning, predict that this year will boast the second best corn crop on record. That could be good news for biofuels. This year, biofuels, which had enjoyed large popularity, were linked to rising food prices and hence were widely criticized. A bad year for corn, the source of ethanol in the United States, could have led to higher food prices and exacerbated the backlash against biofuels.

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MakeSense

99 Comments

1274 Days Ago
08/13/2008

Not worse, but not better either

It's good news that the corn crop will be strong; however, that just puts the ethanol situation where it has been. The lack of a corn shortfall does not translate into a better report card for corn ethanol. Because corn production is about where it has been and ethanol production is likely to continue along its increasing path, whatever concerns existed will continue to exist.

We've been using 12% of the corn produced worldwide to supply America's corn ethanol boondoggle. That's a total shame, because most of that corn would have been exported to feed people. As it is, exports are due to trickle to nothing.

Pugeez

1 Comment

1191 Days Ago
11/04/2008

Corn slow to be harvested

Kevin, you are kinda right, it is a good corn year despite the early season floods. However, those early season floods extended corn production later into the year. As of yet, only around 55% of the corn has been harvested. Compared this to last year which at this time around 78% of the corn was harvested.

Lets not count our kernels until they are in the silo. Another bad weather event could ruin those projected harvest numbers that the USDA is forecasting.

That is why corn commodities are not dropping as much as they have in the past month or two.