Unexpected bumper crops unlikely to give much relief

Chicago Tribune

Aug 12, 2008 (Chicago Tribune - McClatchy-Tribune News Service via COMTEX) -- As recently as 10 years ago, a bumper crop of corn was welcome news for farmers and consumers alike. The farmers would have more bushels to sell, which would drop prices for those buying eggs, steak and turkey at the grocery store.

But in the era of ethanol, even the extraordinary harvest predicted Tuesday by the government will likely provide little relief from the pressure of high prices, which hang over growers, food producers and consumers like a scarecrow.

The Agriculture Department projected this year's corn crop has withstood rains and flooding to deliver a harvest of 12.3 billion bushels _ 573 million more than it expected last month and second in size only to last year's harvest.

With ethanol expected to consume more than 30 percent of that harvest, the economy has embarked on a new cycle in which bumper yields instantly find new buyers, the prices stay higher and farmers face greater expenses for land and fertilizer, causing them to respond by continuing to plant more corn.

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