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USDA Predicts Almost 5% Rise in Grocery Prices

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    Michigan Farm Bureau’s Pat Feldpausch on the drought, rising crop prices and ethanol requirements.

  • Duration 3:21
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In the midwest has left farms devastated and I use that would advisors -- Half the country is facing extreme hate.

No right spring crops have taken a very hard hit according to the USDA shoppers could -- food prices rise maybe four bit -- -- date next year.

Joining me now is the pharma I any -- at the center of it all.

-- -- -- Is with -- Michigan's Clinton county farm bureau -- Welcome to the program will very sorry to hear about the problems -- you'll cross I want you to tell us if you can.

How bad is it on you'll 17100.

Acres of corn and soybeans.

Stewart we did received some.

Much needed drain here this week so.

Took some of the pressure off that.

Depending on soil type in actually location.

The rainfall -- so you know within 23 miles of each other different farms correction differently.

How -- it kitty tell me how small how how big.

And a decline in the size of the corn harvest you see in your area.

All we could see.

20% decline in the corn crop and our area okay now as I understand that the government has mandated.

That we produce fifteen billion gallons of ethanol almost entirely from -- this year the year 2012.

That's not hunting the supply demand situation is because that's a mandate you're gonna get out that in used -- the little Coleman we've got.

-- Stuart that's renewable fuel standard.

But the renewable fuel standard does have a waiver process.

So we -- run into a short crop like we may this year.

We do have a waiver process.

Free PA to.

Tape percentage is down on that and be able to make sure that we provide a good safe.

Reliable food source for -- for the nation.

Is it too late if you got a lot of rain now.

Would that's just alleviate the whole problem and you you you got a decent crop.

-- absolutely not rain right now all all what it does is stops.

Good grow from are making the -- smaller.

Com news you cannot make -- -- much bigger now by rain but we can keep the craft from getting smaller.

Do you think are you are you gonna get government supports anonymous a government handouts that's the wrong word to use are you gonna get any money from the government because of us.

Well.

That's why the farm bill so important Stewart.

-- the government through the farm bill.

Provides us with -- Abilities to buy crop insurance.

In each individual farm.

Gets to -- -- crop insurance as they see needed for their farm business so the government supplies us that tool.

Through the farm bill and that's why did getting a new farm bill is so important to American agriculture right now.

Now I think there's a lot of misconception if people think that you guys you follow me just get money just -- a check in the mail us something and in fact what you get is support -- crop insurance that's an important distinction.

-- help -- I'm terribly sorry we've run out of time but we really thank you for being with us today.

And we truly sympathize with your situation -- -- -- farmer in America Pennsylvania -- that is there.