Nearly half of all domestic corn production is used as livestock feed, a trend that is now encouraging larger livestock producers to import corn from Brazil while smaller farmers must reduce herd sizes by sending more animals to the market. Most immediately, poultry prices are expected to rise 3.5 to 4.5 percent due to the animals’ more rapid growth and therefore more sudden response to higher feed prices. The price of beef is projected to rise the highest – 4 to 5 percent by November – but at a slower rate, reflecting the longer growth period and higher feed requirements of beef cattle.
Higher US grain prices could have an even greater impact worldwide. The United States is the world’s largest corn producer as well as a major exporter of crop-derived agricultural products. Declining domestic production could translate into exacerbated food security problems abroad. Countries that import corn and soybean byproducts or animal feed, such as Japan and Mexico, will be affected the most.
Climate change is making it increasingly important to protect local agriculture in the United States and address the issues underlying its vulnerability to natural disasters, such as drought.