Corn On The Rise
Louis Anesi grew up on a farm. He's retired now, but he admits he still knows a thing or two about farming. When it comes to how a farm influences the market, he says the answer is deeply rooted.
"They don't just walk to the market; they have to be planted, they have to be harvested, they have to be cultivated, they have to be trucked to market, and that involves costs," Anesi said. "Those costs are going to be passed on to the merchants and they're gonna have to pass it on to the people that buys the food."
Farmers rely on corn for feeding their livestock and with the cost of corn exceeding $4 a bushel this year, its more than doubled from the last couple of years.
"Farmers have reacted to the higher price in corn by planting 19 percent more corn acres this spring," said Kelly Smith of the Missouri Farm Bureau.
Corn is the main ingredient in ethanol, which is being used more and more across the country. As the price of corn increases, farmers have a greater incentive to plant more and increase it's supply. If farmers under produce, corn prices would rise even more, and if that happens, other goods go up.
"It takes fuel to produce these foods to become groceries," said Anesi.
"I think the reason that food prices have risen in the last quarter is basically having to do with the price of energy," said Smith.
According to the Farm Bureau, the increase in corn production is driving down prices, which is at about $3.30 a bushel by last month's records.