The National Corn Growers Association (NCGA) has updated its recent report on the effect of corn prices on food prices. The update reflects the new estimate by the U.S. Department of Agriculture of significantly more acres planted to corn this year.
This report summarizes key results of a private study conducted for NCGA by Advanced Economic Solutions and also offers analysis based on information from a variety of other sources, such as the U.S. Department of Agriculture (USDA) and Bureau of Labor Statistics (BLS).
According to the report, if current corn prices recede back to historical levels because of a significant increase in production this year, there would be little or no impact on consumer food prices. The paper concludes that if corn prices remain at the $3.50-4 per bushel range for several years, consumers might experience marginal food inflation for some grocery items.
The updated report, “UNDERSTANDING THE IMPACT OF HIGHER CORN PRICES ON CONSUMER FOOD PRICES,” is available here.
KEY ISSUES
