Farm Talk

Crops

July 17, 2012

Corn prices vs food prices, don’t blame corn

Parsons, Kansas — Only 1.5 percent of U.S. Corn Supply Is Used In “Cereals and Other Products” Category… Farmers Still Get Only nine cents of the $4.19 That Consumers Pay for a Box of Cereal According To USDA Price Statistics

“With a drought-driven-reduced 2012 corn crop we see higher corn prices paid to farmers being blamed as the reason food prices to consumers will rise and that is wrong,” says Gale Lush, Nebraska corn farmer and Chairman of the American Corn Growers Foundation. “Only 200 million bushels or 1.5 percent of the 2011/12 marketing year’s 13.5 billion bushel corn supply will be utilized in the corn use category of “Cereals and Other Products” according to the June 2012 reports from the U. S. Department of Agriculture’s (USDA) Economic Research Service. The farmer’s share is only nine cents of a $4.19 box of cereal.”

“For those who are trying to make corn use for ethanol the scapegoat farmers need to remind the public, politicians and consumers that only the starch from yellow field corn is used to produce ethanol,” said Lush. “The protein, minerals, oils, all those high value feed components, still go to livestock feed just as they would have if the entire bushel of corn would have been fed to livestock. The real added value is that with corn use for ethanol the livestock still gets the feed and the U.S. economy gets all those billions of gallons of ethanol that results in about $1.09 per gallon cheaper gasoline prices at the pump for all U.S. motorists, or a savings in 2011 of about $1,200 per household, according to the University of Wisconsin and Iowa State University.”

Lush added, “According to the USDA National Agricultural Statistics Service the retail price paid at the grocery store for an 18 ounce box of cereal, such as corn flakes in May 2012, was $4.19. The farmer’s share of that $4.19 box of cereal was only $.09 or about two percent.  Even with stronger corn prices the farmer still only gets about two percent of the retail price paid by consumers for the relatively small amount of the U.S. corn supply that goes to cereal products. Who gets $4.10 of that $4.19 price paid by consumers for that box of cereal? According to USDA, off farm costs including marketing, processing, wholesaling, distribution and retailing account for 80 cents of every food dollar spent in the United States. It’s not the price of corn causing grocery prices to go up.”

Source: USDA-ERS June 2012 Corn Food, Seed, Industrial.

1
Text Only
Crops
  • cornplantlatemay2.jpg WASDE report eases low crop price fears

    USDA’s April 9 World Agricultural Supply and Demand Estimates continued a series of recent reports that have offered corn and soybean producers a more optimistic grain-price outlook than what was expected for most of the winter, Purdue Extension agricultural economist Chris Hurt says.

    April 15, 2014 1 Photo

  • USDA: Corn acres expected to drop 4%

    The amount of American cropland devoted to corn is expected to shrink about 4 percent this year as farmers devote more acres to soybeans, the U.S. Department of Agriculture said last week.

    April 8, 2014

  • Bt-resistant rootworms ID’d in five states

    Researchers say bugs are developing resistance to the widely popular genetically engineered corn plants that make their own insecticide, so farmers may have to make changes.

    April 1, 2014

  • MU economist: Corn, bean price volatility next 5 years

    Expect volatility in the soybean and corn markets over the next five years, said Pat Westhoff, director of the University of Missouri Food and Agricultural Policy Research Institute (MU FAPRI).
    Look for corn prices to drop to $4 per bushel and soybean to $10 per bushel on average for the next five years, he said.

    March 25, 2014

  • marestail.jpg Plan now to control marestail in soybeans

    Controlling marestail in soybeans has been a big challenge for Kansas no-till producers in recent years.
    Because soybeans are generally planted later in the season, and marestail generally germinates in the fall or early spring, application timing and weed size are critical factors to successful control.

    March 18, 2014 1 Photo

  • Checking alfalfa for winter injury

    In the last couple of weeks, I’ve heard many concerns about alfalfa production for this spring.
    Cold temperatures and lack of snow cover are the two main issues producers are worried about for next season’s crop production, as certainly the alfalfa plant could die if exposed to extremely cold temperatures. In general, alfalfa plants can tolerate up to three weeks of winter injury before the plants are killed.

    March 11, 2014

  • soypods.jpg USDA reports on status of GE crops

    Genetically engineered (GE) varieties with pest management traits became commercially available for major crops in 1996.
    More than 15 years later, adoption of these varieties by U.S. farmers is widespread and U.S. consumers eat many products derived from GE crops — including corn-meal, oils, and sugars — largely unaware that these products were derived from GE crops.

    March 4, 2014 1 Photo

  • wheat-head.jpg Everest still leads Kan. wheat acres

    For the second year in a row, a variety of wheat developed by Kansas State University, is the leading variety in Kansas.

    February 25, 2014 1 Photo

  • RickReimer.jpg Innovation, exports fuel soybean demand

    Brent Hayek is revved up about potential new uses for soybeans, and he is piling up the miles to share his enthusiasm.

    February 18, 2014 2 Photos

  • red_clover.jpg Seed legumes on snowy fields

    Winter seeding clover over grass pastures works best in February. Frozen fields are ideal and a snow cover makes seeding easier.

    February 11, 2014 1 Photo

Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Seasonal Content