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Max Armstrong, Farm Progress director of broadcasting, weighs in on rising crop prices and its effect on consumers and farmers.
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The intense early summer heat is sure scorching areas from Missouri to New York to Georgia check this out at least sixteen states are under heat advisories or warnings.
Max Armstrong joins us now he's the director broadcasting it farm progress Max welcome -- so because in these extreme weather conditions -- seeing.
The price of wheat corn soybeans spy -- First things first for you for me for consumers people around the -- is -- -- the food shortage.
Well -- -- others are going to be a food shortage -- but definitely we're going to have upward pressure on prices there's no doubt about it we sought affecting their meat case last year when we have the drought in the Texas Oklahoma area this is going to extend it.
That I believe because it will retard the recovery.
And they cattle industries are going to be slow to rebuild but in addition of that.
We've shifted this right into the corn and soybean producing areas -- even wider impact of a shopping cart.
Yes so let's talk about the shopping cart not just for some of these wheat corn -- that food commodities but it your point two we've been covering the cattle story is well a lot of herds are.
At risk of having to be moved to finally truly greener pastures so what should we expect for the grocery bill.
Well I think there's definitely going to be upward pressure USD -- after revised upward the numbers on the amount of increase in retail food prices similar because of the -- we've seen these prices continue to climb and they are nervous thing about it is -- the moment.
We don't see any relief in sight in terms of beneficial moisture or a break at this -- Some of the longer range forecasters are saying it'll be above normal to much above normal right over the heart of the country right on through the month of July.
That's really scary -- so we -- Goldman Sachs increase its forecast for wheat corn and soybeans.
Like more than a dollar a bushel in in these cases so.
You know I know you covered this stuff this is what your expertise lies and so just it.
In terms of again getting back to the grocery shopping carts twenty dollars thirty dollars more -- for -- average grocery consumer what would -- think.
Well it's hard to pay get a right at the moment they're specifically one thing that we're gonna see here -- these higher prices will -- that a bad it's it's killing demand.
Ethanol plants are powering down a little bit exports are falling back a little bit so it's a little bit uncertain mr.
exactly how it's going to turn out partly because this is still a situation influx -- we could get some -- get a -- of the -- and I -- -- -- make a difference in some of the late soybeans other -- our drop.
Added an -- Iranian -- anything bearish going on for these crops.
Well the very -- as we are in and in fact there and -- destroying some of the demand just as I said a couple of minutes ago the fact that we are seeing.
Pulling back a little bit on the demand from some of the countries overseas that prices are doing exactly what they're supposed to do and that's ration demand.
How is all impact the farmers higher prices does that mean more profits for them or because the crop itself is smaller it does that end up hurting the farmers.
What's up -- I don't.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- It's not going to make me -- here it's it's a very unnerving situation many of our younger producers have never seen anything like this before if you're under the age of forty you have you -- -- remember very well the drought of 1988.
Which involved about half of the land mass.
-- the 48 adjacent states this one involves 72%.
Of the land mass of the lower states and and so it that's it's bigger it will be costlier in many ways.
-- -- farming industries really made strides in recent years right really recouping a lot of lost revenue in decades before to your point that last track so how much of the sad fact you think this season is overall for the farming industry.
Well ever -- to be seen it will you know the fact that we have had several good -- here a couple of good years -- will soften the blow a little bit but.
It's often been said that a drought has a long tail media takes a quite a while to recover from a drought.
And you know we're looking at a wide -- -- impact here.
Right -- the heart of the country and like I said there's there's no relief in sight with temperatures forecast in Saint Louis this week to be hatter.
Hundred degrees or more each day I'll tell you what that -- -- -- -- is sister out news is not making things any easier or cheaper thank you so much Max Armstrong appreciate it.
Nice to visit -- thank you.
