Heatwave Hammers Corn Production, Prices Rise

July 11, 2012

Thanks to the record breaking heatwaves that have been sweeping the Midwest section of the country, over 1,000 counties in 26 states have been declared natural-disaster areas by the U.S. Department of Agriculture. This is the largest declaration ever issued of its kind in the U.S.

Currently, over 50% of the Midwest is faced with moderate to extreme drought conditions. The drought is expected to cut crop production which could lead to a sharp increase in food prices.

Corn production is expected to reach its lowest level since 1988, driving prices up by 40% recently.

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