Purdue professor warns of volatile days for corn growers

Boilerstation
11:18 PM, Apr. 28, 2012

Written by ERIC WEDDLE


Climate change, energy policy could make for wild price ride

Corn prices could increase drastically in the future due to a combination of climate change and federal biofuel mandates.

A study out this week from faculty at Purdue and Stanford universities warn that the price volatility of corn could increase by about 50 percent over the period from 2020-2040 as compared to recent history.

Thomas Hertel, a Purdue distinguished professor of agricultural economics, said the study finds the Corn Belt states, including Indiana, to be at risk.

"Closer integration of the corn and energy markets through the ethanol industry could aid in buffering these shocks, but this would not occur in the presence of a mandate," he said.

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