The United States Department of Agriculture expects the price for corn and oil seeds to steadily incline over the next ten years for consumers and producers according to the “Agricultural Projections to 2020” report.
The report explains there is currently a high demand for corn from European countries as well as for biofuel within the United States. This is the direct cause of the inflation. These crops are not the only items to increase as corn and grains are often used as feed for livestock. This means meat and dairy prices will also increase over the years.
The cost of feed is expected to deter producers from increasing livestock herds and will in fact cause a great decline in meat production. The increase in feed and lack of meat production incentives will be the driving force. For consumers this means higher prices at the grocery store and butcher. Production decline is expected to being as soon as 2012.
Though meat production will decline, experts believe poultry production will steadily incline over the next few years. From 2009 to 2020 poultry consumption alone is expect to rise 2.7 percent. Click here to view the report.
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