USA - High corn prices mean tough times for livestock farmers
Published:November 27, 2006
Source :Who TV
Corn prices are at their highest in a decade this fall, which means generous profits for grain farmers.
It also means trouble is ahead for livestock producers who feed their animals with corn.
Farmers are selling corn at more than three dollars a bushel. That's a 60 percent increase from last fall, mainly due to more demand for corn by the ethanol industry.
Dermot Hayes, a researcher at Iowa State University, also sees trouble ahead for livestock producers. As corn prices continue to rise, he says it will cost more for hog producers to feed the livestock.
Hayes predicts US hog and poultry production could decline as much as 15 percent to compensate for the higher corn prices. That could drive many farms, especially smaller ones, out of business.
