How the Drought Will Cost You
Jul 18, 2012
Record setting temperatures and little rain have put much of the Corn Belt under a severe drought. The extent of drought nationwide is at its highest levels in this century, according to the U.S. Drought Monitor report.
“The drought is going to have a direct impact on all our wallets,” said Paul Walsh, vice president of Weather Analytics for The Weather Channel.
Walsh said the drought has impacted one of America’s biggest cash crops: corn. This year’s record heat has created a bad growing conditions.
Corn is hugely impacted by weather. The beginning of the year was perfect for crops, but now the corn is in the middle of pollination. That’s when the big risk comes in, Walsh said. Extreme heat and drought can decrease the number of kernels on the corn stalk.
Fewer kernels lead to a lighter crop, forcing prices to rise. Since mid June, corn prices have been on the rise. Just this week they shot up 5 percent.
Corn is directly tied to the U.S. economy because it is found in thousands of products. In the following pages we look what items you’ll be paying more for by the end of the year.