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Corn Loss Won't Significantly Impact Food Costs

Illinois corn is not looking good this year and some say the loss could mean a rise in food costs.  But Illinois Farm Bureau senior economist Michael Doherty says the increase will be minimal.

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The cost of fresh meats could go up thanks to drought like conditions but Doherty says the increase won't be much.  He gives an example on purchasing a six dollar whole chicken.

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The drought is forcing Illinois farmers to mow down their corn fields and some say the loss will mean higher prices in the grocery store.  Doherty explains that's not necessarily the case.

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Doherty says most of the corn produced in Illinois is used for animal feed and ethanol, not human consumption.  And when it comes down to it, he says only a small percentage of the global corn crop and feed grain will be impacted by the drought.  The USDA projects a three to four percent increase on fresh meats in 2012 but that's not all related to the drought.  Doherty says there are several factors that must be taken into consideration when it comes to price increases, including processing and keeping fresh meat refrigerated until it reaches grocery store shelves.

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