Variable weather across the nation last year has caused corn yields to dip below the required marks. It’s officially called a shortage and in the wake of the shortage news, corn prices soar. The lack of corn yield effects many people because of the many uses of corn in the united states and all over the world. The shortage has sent people from every stock of life to the table and in order to protect wages and ensure that there will be enough of everything to have a stock the following year. Here, are just a costs of a corn shortage.
Costs of High Corn Prices
1. World Stock- The United States contributes a considerable amount of corn for the world each year. Poor weather everywhere has caused a shortage and the price sky rocket. These two variables affect many people across the world. First, it means that there will be less corn to go around and less to be bought. Secondly, that families and refugees who depend on that corn will have a harder time getting their hands on the high priced commodity.
2. Farmers- Farmers everywhere were forced to make a decision about where to send their corn. Should it be sold for food or should it be sold for gasoline. Either way, the profits and system that supported the corn farmers of American took a huge hit with such a low yield surely the loss of profits was felt.
3. Consumers- Because of the shortage of corn everything from gasoline, to corn, to food made with corn rises with inflating prices. This means that consumers will be forced to flip the bill for bad weather and poor yields.
The cost of corn will be felt by every one from the person shopping in the grocery store to the rich guy who produces ethanol gasoline.