Decision could force poultry, beef and pork companies to raise prices...not much more land to grow additional corn.
AP - March 28, 2008
Des Moines, Iowa - As spring planting nears, farmers are making a choice that could affect what Americans pay for everything from car fuel to chicken wings.
If they choose to plant as much corn as possible, prices that have soared to record highs above $5 a bushel could stabilize. But if many farmers rotate their plantings to other crops such as soybeans, or the season is disrupted by bad weather or drought, the price of this key ingredient could soar even further.
That would leave other food producers — especially poultry, beef and pork companies, where corn feed comprises up to three-quarters of their operating costs — with little choice but to raise their prices as well… [Read More]