Experts issue warning that price of staple food item could soon skyrocket — here's what's happening

Analysts are warning that uncertainty over global trade and reduced supply could spike the prices of a major commodity. According to reporting by The Hindu BusinessLine, experts are projecting a rise in corn futures that could have a global impact. 

What's happening?

One factor behind the surge in corn prices is Argentina's reduced corn output due to erratic rainfall. Argentina is the third-largest corn producer globally, but it is in the midst of a devastating drought, per Reuters. The ongoing war in Ukraine is another contributor, as the Eastern European nation was the fourth-largest corn producer. 

We might think of corn mainly as a food, but the vast majority of corn yields don't actually end up on the dinner table. According to statistics provided by the U.S. Department of Agriculture, corn is primarily used for livestock feed and biofuels. Accordingly, the consequences of higher corn prices will be widespread.

Why are high corn prices a concern?

First, there's the cost to consumers. Though corn is not primarily grown for food, it still impacts food prices as it is a staple ingredient in many processed foods and livestock feed. Higher costs incurred by farmers will naturally be passed on to consumers.

Secondly, the higher prices will incentivize corn farmers to grow even more, compounding corn's harmful environmental impact. 

Corn production is a huge contributor to air pollution; one alarming study linked the pollution caused by corn production to 4,300 premature deaths in the United States yearly, per NPR. Ammonia from chemical fertilizers is the most significant contributor, but there are also pesticides, emissions from large gas-guzzling vehicles, and dust kicked up from tilling the soil. 

This will create a vicious cycle: The environmental damage done by the corn industry will contribute to warming global temperatures and worsen the extreme weather events that result. Research by Penn State University indicates that corn yields will drop by around 2% to 21%, putting even more strain on water supplies. 

What can be done about high corn prices?

For consumers, shopping smart is always a good idea, but especially when food prices are spiraling out of control. A little forward planning can save money and help the environment, as can staying informed about key climate issues. 

Reducing corn's environmental impact will require a blend of adopting more sustainable agriculture practices to boost yields using fewer resources and widespread adoption of clean, sustainable energy.

Homeowners can help with home improvements like solar panels. EnergySage has a useful guide for getting started. 

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