April 25, 2007

High corn prices a mixed bag in US poultry-raising states

Farmer L.C. Jones is making room for more corn in his fields, hoping to take advantage of skyrocketing corn prices this year.

But as Jones prepares for a boost in corn profits, he knows his neighbours on the poultry-raising Eastern Shore of Maryland are watching corn prices with a nervous eye.

Corn is selling near US$4 a bushel, up about 25 percent from last year, a boom attributed to higher demand for ethanol fuel.

Richard Lobb, spokesman for the National Chicken Council, said corn that poultry growers want to feed their chickens is going into fuel tanks. High corn prices could affect many foods, from breakfast cereals to beer, but Lobb said poultry growers are particularly sensitive.

The US Department of Agriculture says that in Maryland, where many farmers will plant corn this week, total acreage is up 12 percent. Delaware corn acres are up 9 percent.

In Georgia, corn acres are up 79 percent. In Arkansas, home to Tyson Foods, the nation's largest meat producer, corn acres have almost tripled from last year.